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Answer these questions.Putting missing words Possible causes of demand-pull inflation include: A in the exchange rate . Fiscal stimulus e.g. via a in direct or

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Answer these questions.Putting missing words

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Possible causes of demand-pull inflation include: A in the exchange rate . Fiscal stimulus e.g. via a in direct or indirect taxation or government spending. . Monetary stimulus to the economy e.g. a in interest rates.. Faster in other countries. . Rising consumer and businessInvestment . Lower AD, output gap... reduces need for investment Increased debt burden... reduces investment . Increased real rate of interest and fall in on projects (revenue falls) ... reduces investment . Fall in as revenues fall .... reduces investment . Fall in business .... reduces investment . Benign deflation ... increases investment Balance of Payments price competitiveness increases exports and reduces imports improving balance of trade on the current account (UK trade balance example) . Lower investment will reduce competitiveness (UK compared to trading partners) . Falling and lower production reduces imports . Deflation in other countries (examples) will reduce exports as GDP and consumption falls in other countries

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