Which of the following is NOT a potential start of a demand-pull inflation?
A) an increase in the quantity of money
B) an increase in government expenditure
C) an increase in taxes
D) an increase in exports

Question

Quizplus · Accepted Answer

Demand-pull inflation is caused by an increase in demand for goods and services, which can be triggered by an increase in the quantity of money (making more funds available for spending), an increase in government expenditure (injecting more money into the economy), or an increase in exports (leading to more foreign spending on a country's goods and services). An increase in taxes, however, typically reduces consumers' disposable income, thereby reducing demand and is not a cause of demand-pull inflation.

Which of the Following Is NOT a Potential Start of a Demand-Pull