In a demand-pull inflation, if the Fed stops expanding the quantity of money,
A. a cost-push inflation will occur.
B. government expenditure will cause the demand-pull inflation to continue.
C. a deflation will occur.
D. the demand-pull inflation ends.
Answer:D
In a demand-pull inflation, if the Fed stops expanding the quantity of money,
A. a cost-push inflation will occur. B. government expenditure will cause the demand-pull inflation to continue. C. a deflation will occur. D. the demand-pull inflation ends.