In an economy, the elasticity of demand for imported raw materials is 0.3 and the elasticity of demand for exports is also 0.3. After the economy’s currency depreciates, what effect will this have on inflation? changes in cost push factors will lead to inflation / changes in demand pull factors will lead to inflation
- Adecrease / decrease
- Bdecrease / increase
- Cincrease / decrease
- Dincrease / increase