Which of the following could start a demand-pull inflation?
A) an increase in government expenditure
B) an increase in imports
C) a decrease in the quantity of money
D) an increase in the money prices of raw materials

Question

Quizplus · Accepted Answer

An increase in government expenditure can lead to demand-pull inflation by increasing the overall demand in the economy, which, if not matched by a corresponding increase in supply, can push prices up.

Which of the Following Could Start a Demand-Pull Inflation