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 Form 4 online business studies lessons on inflation

Causes of demand-pull inflation

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Answer Text:
Causes of demand-pull inflation:
-Excessive credit creation by banks increasing the money supply in the country.
-easy hire purchase terms increasing the purchasing power of the citizens.
-increase in government expenditure ,investment and consumption.
-increase in export earnings increasing money supply in the country.
-increase in population increasing the demand for goods and services.
-General shortage of goods and services caused by bad weather and hoarding.