After an increase in consumer confidence leads to a rise in consumer purchases, there is:
A) an increase in unemployment.
B) an increase in the money supply.
C) cost-push inflation.
D) demand-pull inflation.

Question

Quizplus · Accepted Answer

When consumer confidence increases, leading to a rise in consumer purchases, it typically results in demand-pull inflation. This occurs because the higher demand for goods and services can outpace supply, causing prices to rise.

After an Increase in Consumer Confidence Leads to a Rise