Demand-Pull Inflation Could Start with

question 232

Multiple Choice

Demand-pull inflation could start with

• A) an increase in government expenditure followed by an increase in the money wage rate.
• B) an increase in the quantity of money followed by a decrease in the money wage rate.
• C) a rise in prices of raw materials followed by an increase in the quantity of money.
• D) a decrease in exports followed by a decrease in the quantity of money.

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Definitions:

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