With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fiscal stimulus 3. Inflation-indexing wages 4. Higher purchasing power 5. Rising interest rates Select the correct answer using the code given below.
a
1, 2 and 4 only
b
3, 4 and 5 only
c
1, 2, 3 and 5 only
d
1, 2, 3, 4 and 5
InflationTypes and Causes of Inflation (Demand-Pull)Demand-pull inflationexpansionary policiesfiscal stimulusinflation-indexing wagespurchasing powerinterest ratesaggregate demand