Which of the following could NOT start a demand-pull inflation?
A) increases in government expenditure
B) increases in net exports
C) increases in oil prices
D) increases in the quantity of money

Question

Quizplus · Accepted Answer

Demand-pull inflation is caused by an increase in demand for goods and services, which can be triggered by increases in government expenditure, net exports, and the quantity of money. However, increases in oil prices typically lead to cost-push inflation, where prices rise due to an increase in the costs of production.

Which of the Following Could NOT Start a Demand-Pull Inflation