ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is not a possible cause of demand-pull inflation?
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An increase in government spending.
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An increase in the oil price.
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An increase in consumption spending.
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An increase in investment spending.
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Explanation:
Detailed explanation-1: -With reference to the demand-pull inflation, which of the following is not the factor responsible for demand-pull inflation? Increasing foreign exchange reserve.
Detailed explanation-2: -This type of inflation is caused due to an increase in aggregate demand in the economy.
Detailed explanation-3: -Expert-Verified Answer. (d)Increase in demand for money is not a cause of inflation.
Detailed explanation-4: -Population is not a determinant of a consumer’s demand for a commodity.
Detailed explanation-5: -The main causes of inflation can be grouped into three broad categories: demand-pull, cost-push, and. inflation expectations.
There is 1 question to complete.