A.
inflation induced by rising costs of production
B.
reduction in government expenditure
C.
persistent rise in prices due to increase in expenditure
D.
massive importation of goods from a country with hyper inflation
Correct Answer: Option C
Explanation
Demand pull inflation is simply a rise in price as a result of a fall in supply. It is caused by increase in the costs of raw materials or labor that affect the supply of finished goods.
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