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A.
increase in the cost of production.
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B.
excessive supply of foodstuff
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C.
deficit financing by the government.
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D.
increase in import duties.
Correct Answer: Option 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.
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