Multiple Choice
Demand-pull inflation may be caused by:
A) An increase in costs
B) A reduction in interest rates
C) A reduction in government spending
D) An outward shift in aggregate supply
Correct Answer:

Verified
Correct Answer:
Verified
Q8: Purchasing power of money during deflation is:<br>A)Reduced<br>B)Increased<br>C)Constant<br>D)Fluctuating
Q9: Inflation is a situation when:<br>A)Prices of some
Q10: During inflation:<br>A)Lenders lose, borrowers gain<br>B)Borrowers lose, lenders
Q11: Inflation can be controlled by applying:<br>A)Monetary and
Q12: In the equation PY = MV showing
Q14: Inflation:<br>A)Always reduces the cost of living<br>B)Always reduces
Q15: When the nation's money supply is Rs.
Q16: For the economy, prices are beneficial:<br>A)Falling slowly<br>B)Rising
Q17: If quantity of money increases 100%, other
Q18: Value of money means:<br>A)Gold purchased by money<br>B)General