Demand-pull inflation persists because of
A) continuing increases in government expenditures.
B) continuing increases in the quantity of money.
C) continuing increases in real wage rates.
D) continuing increases in aggregate supply.

Question

Quizplus · Accepted Answer

Continuing increases in the quantity of money lead to demand-pull inflation because they increase the amount of money available to spend on goods and services, which in turn increases demand and prices.

Demand-Pull Inflation Persists Because of