Which of the Following Policies Might Create Demand-Pull Inflation

question 58

Multiple Choice

Which of the following policies might create demand-pull inflation

• A)A decrease government spending
• B)A decrease in interest rates
• C)An increase in taxes
• D)All of these policies could create demand-pull inflation

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Definitions:

Short-Sell

A trading strategy where an investor borrows a security and sells it on the open market, planning to buy it back later for less money.

Loss

The financial result of an activity when costs and expenses exceed the revenues or returns generated.

Bid and Ask Prices

The prices at which buyers are willing to buy (bid) and sellers are willing to sell (ask) a security or asset in the market.

Transaction Cost

Any expenses incurred when buying or selling securities, including broker's fees, taxes, and other charges that can impact the investor's net returns.