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In a Demand-Pull Inflation,if the Reserve Bank Stops Expanding the Quantity

Question 40

Multiple Choice

In a demand-pull inflation,if the Reserve Bank stops expanding the quantity of money,


A) a cost-push inflation will occur.
B) a deflation will occur.
C) the demand-pull inflation ends.
D) government expenditure will cause the demand-pull inflation to continue.
E) None of the above answers is correct.

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