Economics · Money and Inflation
Which of the following factors generally leads to Demand-Pull Inflation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A sharp decline in consumer spending
- 2An increase in the policy interest rates
- 3An increase in the money supply in the economy✓
- 4An increase in the aggregate supply of goods
Correct answer
An increase in the money supply in the economy
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