Which of the following is NOT a type of inflation based on cause?
A. Demand-pull inflation
B. Built-in inflation
C. Creeping inflation
D. Cost-push inflation
Answer: Option C
Solution (By JKSSB Mock Tests)
Creeping inflation is classified on the basis of speed/intensity. Demand-pull, cost-push and built-in (wage-price spiral) are classifications based on causes.
Explanation:
The traditional SCP paradigm posits a causal chain from market structure (concentration, entry barriers) to firm conduct (pricing, advertising) to market performance (profits, efficiency).
Explanation:
A carry trade involves borrowing funds in a currency with a low interest rate and investing them in a currency with a higher interest rate, thereby earning the interest differential while remaining exposed to exchange-rate risk.
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