6
QuizMultiple Choice

Investing and Financial Markets — Unit test

Question 6 • Personal Finance - EL3403

Demand-pull inflation happens when the demand for goods

Answer
A
remains very low.
B
shifts up and down.
C
matches the supply.
D
increases.

Explanation

Demand-pull inflation occurs when overall demand for goods and services increases faster than the economy can supply them. The competition for a limited supply pushes prices upward, so the correct choice is “increases.”

AI-written and checked against the verified answer.

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