Explain how government spending can cause demand pull inflation

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asked Dec 3, 2018 233k views

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Zulucoda · Answer 1 · 2018-12-07T18:20:03+0000

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.

Explain how government spending can cause demand pull inflation

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