Demand Pull Inflation Can Be Started by

question 289

Multiple Choice

Demand pull inflation can be started by

• A) a decrease in the quantity of money.
• B) a decrease in net exports.
• C) an increase in the price of oil
• D) an increase in government spending.

---

Definitions:

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Bounded Rationality

A concept that decision-makers are limited by the information they have, cognitive limitations, and finite time to make decisions.

Bounded Rationality

The concept that when individuals make decisions, their rationality is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

Political Acceptability

The degree to which a policy, action, or decision is considered acceptable by political entities and the general public.