Which event is LEAST likely to result in inflation?

A. Rampant government debt leads to excessive printing of money.
B. A severe drought in the South results in a reduced harvest.
C. Increasing imports causing domestic manufacturers that are unable to compete to be displaced.
D. Strong consumer confidence leads to robust spending on luxury goods.

Question

19-07-2024
Business

Answered

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Which event is LEAST likely to result in inflation?

A. Rampant government debt leads to excessive printing of money.
B. A severe drought in the South results in a reduced harvest.
C. Increasing imports causing domestic manufacturers that are unable to compete to be displaced.
D. Strong consumer confidence leads to robust spending on luxury goods.

Sagot :

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-07-19T17:19:28-04:00

Final answer:

Consumer confidence driving spending on luxury goods is the event least likely to cause inflation.

Explanation:

Strong consumer confidence leading to robust spending on luxury goods is the event that is least likely to result in inflation. Inflation is typically caused by factors such as excessive printing of money, reduced harvest due to severe drought, and increasing imports displacing domestic manufacturers.

Learn more about Causes of inflation here:

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