Which of the following can trigger demand-pull inflation?

Choose the correct answer

Explanation

Demand-pull inflation occurs when aggregate demand exceeds aggregate supply. A decrease in interest rates lowers borrowing costs, encouraging more spending and investment, which boosts demand and can lead to demand-pull inflation. The other options either affect costs or supply, not demand.

Which of the following can trigger demand-pull infla… — Inflation & Productivity | PakQuizHub