According to the demand-pull theory, what is responsible for inflation?
(A) Demand for goods and services exceeds existing supply.
(B) Too much money is in circulation.
(C) Producers raise prices to meet increased costs.
(D) The economy is in a wage-price spiral.
Answer: Demand for goods and services exceeds existing supply.
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a. True b. False
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Answer the following statement true (T) or false (F)