1. Which of the following can create demand-pull inflation? a. Excessive aggregate spending. b….

1. Which of the following can create demand-pull inflation? a. Excessive aggregate spending. b. Sharply rising oil prices. c. Higher labor costs. d. Recessions and depressions. Which of the following statements is true? a. Demand-pull inflation is caused by excess total spending.
b. Cost-push inflation is caused by an increase in resource costs.
c. If nominal interest rates remain the same and the inflation rate falls, real interest rates increase.
d. If real interest rates are negative, lenders incur losses.
e. All of the answers are correct.