NECO Economics 2007 Objective — Question 28
Question 28 of 60 from the National Examinations Council (NECO) Economics 2007 Objective paper, with the correct answer and a full explanation.
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The type of inflation that occurs as a result of funding a deficit budget is inflation.
- A. cost-push
- B. creeping
- C. demand-pullCorrect
Explanation
When governments fund deficits by increasing the money supply, it increases aggregate demand, leading to demand-pull inflation.
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