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Question
A state where 'too much money chases too few goods' represents ______.
Options
Demand pull inflation
Cost push inflation
Creeping inflation
Inflation
Solution
A state where 'too much money chases too few goods' represents Demand pull inflation.
Explanation:
Demand-pull inflation arises when the economy has an excess of demand over supply, indicating that "too much money chases too few goods." As consumers fight for the limited number of goods and services offered, prices rise overall.
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