Demand-pull inflation can be as a result of___________

a

increase in the cost of production.

b

excessive supply of foodstuff

c

deficit financing by the government.

d

increase in import duties.

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Explanation

Correct Option
c

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Discussions (2)

aikay001
3 years ago

An increase in cost in production is cost push inflation. Demand-pull inflation results when there's high demand over supply. Government adopting a deficit financing causes demand pull inflation in which the expenses of the government is higher than the revenue for a period of time.

So, the answer is deficit financing.

SuleimanOmami11
3 years ago

this isnt correct. demand pull inflation means when a country goes into inflation due to am increase in demand which causes scarcity. but cost pull is when there is an increase in cost of production. abeg make una dey at least use chokes well

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