Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

Which statement about the causes of inflation is correct?

  • ACost-push inflation can be caused by a rising exchange rate.
  • BCost-push inflation can be caused by lower indirect taxes.
  • CDemand-pull inflation can be caused by a rising exchange rate.
  • DDemand-pull inflation can be caused by lower direct taxes.

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