passwella.
Menu

WAEC Economics 2021 Question 36

Question 36

Money and Inflation

Demand-pull inflation can be as a result of

  1. A.increase in the cost of production.
  2. B.excessive supply of foodstuff.
  3. C.deficit financing by the government.
  4. D.increase in import duties.
Show the answer and explanation

Answer: C (deficit financing by the government.)

Explanation

Deficit spending raises total demand above the supply of goods.