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Demand -Pull inflation can be as a result of  

Economics
WAEC 2025

Demand -Pull inflation can be as a result of

 

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

Demand-Pull inflation can be a result of deficit financing by the government. Deficit financing refers to the government's spending
more than it collects in revenue. This increases the demand for goods and services, which can lead to inflation if the supply does
not keep up with the demand.


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