What factors may lead to demand pull inflation?

      

Mention factors that are likely to lead to demand pull inflation.

  

Answers


Maurice
(i) Future expectation of increase in price.

(ii) Increase in consumer expenditure.

(iii) Fall in the level of savings.

(iv) Increase in money income.

(v) Increased credit creation by commercial banks.

(vi) Increase in government expenditure.

(vii) Shortage of goods and services.

(viii) Government printing more money.

(ix) Government buying government securities from the public.
maurice.mutuku answered the question on August 12, 2017 at 06:07


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