Question

Cash-push inflation is usually associated with
(A) Currency factors
(B) Monetary factors
(C) Non-currency factors
(D) Non-monetary factors​

Answer 1

Opption a is the answer

Answer 2

Cash-push inflation is usually associated with Monetary factors.

• this inflation usually occurs when the prices increase due to an increase in the cost of wages and raw materials
• this is usually associated with the monetary factors as it depends on their costs, if the cost of machinery or raw material increases then the inflation increases
• these higher cost in return can lead to a decrease in the aggregate supply of the goods

Thus, the answer is Option B