Search SchoolNGR

Saturday, 21 March 2026
Register . Login

Demand-pull inflation is likely to be caused by

Demand-pull inflation is likely to be caused by
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A An increase in the cost of factor inputs
  • B Increase in the income tax rate
  • C Increase in bank lending rate
  • D Increasingly large budget deficit
Correct Answer: Option D
Explanation:
Demand-pull inflation occurs when there is excess demand of goods over supply. Excessive demand is a consequence whereby consumers have money purchasing power to buy goods and services.

Share question on: