2021 Economy - Demand-Pull Inflation

12. 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.

• 1, 2 and 4 only
• 3, 4 and 5 only
• 1, 2, 3 and 5 only
• 1, 2, 3, 4 and 5