increasing budget surplus
increasing factor costs
exchange rate appreciation
high capacity utilization
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Ans is B...bcus an appreciation makes export expensive and import cheap if there is a decrease in price of import goods that means there will be a decrease in price which lead 2 a reduction in inflation xo D ans is B....bcus an increase in factor costs cause high cost-push inflation
it can't be currency appreciation because when a currency appreciates the export will be expensive and import will increase because it will be cheaper and if there's an increase in import there'll be increase in the amount of goods in circulation thereby decreasing inflation so the answer is increase in factor cost because of cost push inflation
