Demand Pull Inflation
Which of the following policies would decrease demand-pull inflation?
a. An increase in excess reserves.
b. The FED buying government securities.
c. Incomes policies.
d. A reduction in resource prices.
https://brainmass.com/economics/inflation/demand-pull-inflation-448072
Solution Preview
Demand-pull inflation occurs when aggregate demand in an economy is greater than aggregate supply.
a. An increase in excess reserves ...
Solution Summary
Based on the four choices, the solution identifies a policy that would decrease demand-pull inflation.
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