The source of demand-pull inflation is a:
A) lack of expectations.
B) shortage of demand.
C) excess of demand.
D) high cost of production.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when there is an excess of demand for goods and services, which leads to an increase in their prices. This excess of demand can arise due to various factors, such as a growing economy, low interest rates, or expansionary monetary policies.

The Source of Demand-Pull Inflation Is A