Which of the following would lead to lower inflation in the long run?
A)An increase in business confidence
B)An increase in government spending
C)An increase in oil prices
D)A decrease in imports
E)A decrease in consumer confidence

Question

Quizplus · Accepted Answer

A decrease in consumer confidence typically leads to reduced consumer spending, which can lower demand-pull inflation by decreasing the overall demand for goods and services in the economy.

Which of the Following Would Lead to Lower Inflation in the Long