- Demand-pull inflation is caused by increases in aggregate demand relative to aggregate supply. - Factors that increase consumer spending, government spending, investment, or net exports can contribute to demand-pull inflation.
Which of the following lead to Demand-Pull Inflation? 1. A growing economy 2. Increase in Forex reserves 3. Deficit financing by the government 4. Depreciation of rupee Select the correct answer code:
Asked in GPSC Prelims CSP 2 2024 · Topic: Money & Banking (Inflation: Types, Causes, Effects, and Monetary Policy Responses)
More Economic Development questions
- Which of the following institutions regularly conducts the ‘Inflation Expectations Survey of Households’ ?
- What is the measure of inflation in India ?
- In accordance with the RBI Act, the central bank is required to make a report to the government if the inflation target is not maintained for how many quarters?
- In India, inflation rate is measured on the basis of
- Which one among the following is an appropriate description of deflation ?
- Which one of the following will be most inflationary?
- What was the reason for the sharp increase in Consumer Price Index (CPI) in 2008-09 ?
- Which was the year of hyper inflation?
