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.
- (a)1, 2 and 4 only
- (b)3, 4 and 5 only
- (c)1, 2, 3 and 5 only
- (d)1, 2, 3, 4 and 5
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Official answer(a) 1, 2 and 4 only