Which of the Following Factors Could Start a Demand-Pull Inflation

question 17

Multiple Choice

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

• A) A decrease in the money wage rate
• B) An increase in the money wage rate
• C) A decrease in government expenditure
• D) An increase in the quantity of money
• E) An increase in tax rates

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Definitions:

Cost Structure

Cost structure denotes the various types of expenses a business incurs and is typically categorized into fixed and variable costs, influencing pricing and profitability.

Driver's Side Air Bag

A safety device installed in vehicles to reduce the risk of injury to the driver in the event of a collision by rapidly inflating upon impact.

Automobile Manufacturer

A company that produces and sells vehicles designed for transporting people and goods on roads.

Property Taxes

Taxes assessed on real estate properties, based on the property's value, and paid to local governments.