Which of the Following Policies Might Create Demand-Pull Inflation

question 1

Multiple Choice

Which of the following policies might create demand-pull inflation

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

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Definitions:

Sector Fund

A mutual fund that invests solely in businesses operating in a specific industry or economic sector, aiming to capture sector-specific growth.

Equity Trusts

Investment funds that hold a diversified portfolio of equities or stocks, managed by a trustee for the benefit of its beneficiaries.

Mortgage Trusts

Investment funds or trusts that pool investments in mortgage loans or mortgage-backed securities.

Construction Loans

Short-term loans provided to finance the building or renovation of a property, typically requiring interest-only payments during construction and full repayment upon completion.