Economics · Inflation
Which one of the following is most likely to be a cause of demand-pull inflation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Increase in aggregate imports
- 2Increase in borrowings from banks to finance a budget deficit✓
- 3Increase in direct tax rates
- 4Decrease in disposable income
Correct answer
Increase in borrowings from banks to finance a budget deficit
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