Increases in the quantity of money can start a ________ inflation,and an increase in government expenditure can start a ________ inflation.
A)demand-pull;demand-pull
B)demand-pull;cost-push
C)cost-push;cost-push
D)cost-push;demand-pull
E)None of the above is correct because increases in the quantity of money are necessary to continue an inflation but cannot start an inflation.

Question

Quizplus · Accepted Answer

Increases in the quantity of money and government expenditure both lead to demand-pull inflation, as they increase overall demand in the economy.

Increases in the Quantity of Money Can Start a ________