Demand-pull inflation can be as a result of___________
- increase in the cost of production.
- excessive supply of foodstuff
-
deficit financing by the government.
- increase in import duties.
The correct answer is: C
Explanation
Demand-pull inflation is when there is an increase in aggregate demand, and the supply remains the same or decreases.
Demand-pull inflation can be caused by an expanding economy, increased government spending, or overseas growth.