Increases in the Quantity of Money Can Start a ________

Multiple Choice

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

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