Which of the Following Could Start a Demand- Pull Inflation

question 90

Multiple Choice

Which of the following could start a demand- pull inflation?

• A)A decrease in the quantity of money
• B)An increase in the money prices of raw materials
• C)An increase in government expenditure
• D)An increase in imports

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Definitions:

Diminishing Marginal Utility

The decrease in satisfaction or benefit from consuming each additional unit of a good or service.

Utilitarian Argument

A principle in ethics and economics that advocates for actions that maximize happiness or well-being for the largest number of people.

Minimum Wage Law

Legislation establishing the lowest hourly rate that employers can legally pay their employees.

Income Distribution

The way in which a country's total economic output is divided among its population, or the share of national income earned by each quintile or group of the population.