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Economics (AS & A Level) · Oct / Nov 2021 · Paper 11 · Question 26

9708Price stability

What is the most likely cause of cost-push inflation in an economy?

  1. Aan increase in the exchange rate
  2. Ban increase in the money supply
  3. Can increase in the prices of imports
  4. Dan increase in the rate of income tax

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Correct answer: C. an increase in the prices of imports

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