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Increases in the Quantity of Money Can Start a --------------------inflation

Question 96

Multiple Choice

Increases in the quantity of money can start a --------------------inflation and an increase in government expenditure can start a-------------------- inflation.


A) cost-push; demand-pull
B) demand-pull; demand-pull
C) demand-pull; cost-push
D) cost-push; cost-push
E) None of the above is correct because increases in the quantity of money are necessary to continue an inflation but cannot start an inflation.

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