Which of the following will likely lead to cost-push inflation? (1 point)

Question

Responses

a Exports increase dramatically after a relative drop in price.

b Consumers become more comfortable with debt, increasing their spending as they take more loans.

c An increase in the price of oil has reduced supply of all goods and services that use oil as an input. 

d An ongoing war causes government spending to nearly double in quantity.

Answer 1

c An increase in the price of oil has reduced supply of all goods and services that use oil as an input.