Inflation arises

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Inflation is forecasted to remain consistent with its target over the next 1-2 years. Inflation arises when:

A. The expenditure plans of agents exceed the supply of output by firms

B. The earning plans of agents fall short of what they earn in the economy

C. The currency appreciates in the foreign exchange market

D. A and B

A brief explanation is preferred.

Reference no: EM13893282

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