Explain how government spending can cause demand pull inflation

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19-02-2017
Business

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Explain how government spending can cause demand pull inflation

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coronna05 coronna05 · Answer 1 · 2017-02-19T14:05:03-05:00

coronna05 coronna05

19-02-2017

If the gov keeps spending more than what they have, demand pull inflation comes in where they demand that prices go up higher ( pull inflation) so that those higher prices will cover what they just spent.

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