Cost push inflation is likely to arise when

a

there is an increase in banking lending

b

there is an increase in subsidies

c

stock exchange

d

rise in the cost of production.

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Correct Option
d

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Chuks612
9 years ago

The answer is Bank. Cost-push inflation is an inflation that arises due to an increase in the cost of production I.e an increase in the total cost used in the production of a commodity, therefore, pushing the price up and being passed to the consumers in form of high prices. So if there's an increase in subsidies, therefore, its gonna push the prices up.

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