In a Demand-Pull Inflation,if the Reserve Bank Stops Expanding the Quantity

question 40

Multiple Choice

In a demand-pull inflation,if the Reserve Bank stops expanding the quantity of money,

• A)a cost-push inflation will occur.
• B)a deflation will occur.
• C)the demand-pull inflation ends.
• D)government expenditure will cause the demand-pull inflation to continue.
• E)None of the above answers is correct.

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