Which of the Following Is a Possible Cause of Demand

question 35

Multiple Choice

Which of the following is a possible cause of demand pull inflation?

• A) An increase in the prices of imported raw materials.
• B) A higher decline in wages than in the rate of inflation.
• C) A decrease in the income tax rates in the economy.
• D) An increase in the interest rates in the economy.

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Definitions:

Classic Buick

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Specified Amount

An exact or particular sum of money designated in a contract or agreement that is agreed upon by all parties involved.

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Individuals recognized by the Canadian government as being registered under the Indian Act, granting them certain rights and benefits.

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Duties that one or more parties are legally bound to perform under the terms of a contract.