Which of the Following Policies Might Create Demand-Pull Inflation

question 74

Multiple Choice

Which of the following policies might create demand-pull inflation

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

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Definitions:

Pessimistic Explanatory Style

A tendency to explain negative events as having personal, permanent, and pervasive causes.

Type B Personality

A personality type characterized by a less competitive, more relaxed, and less stress-prone behavior pattern compared to Type A personality.

Power Motive

The inherent drive to influence or control others and to achieve a position of authority.

Impulsivity

A trait characterized by acting on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.