What statement is correct? a) the money supply does not play a role in sustained inflation. b) inflation initiated by an increase in money supply is referred to as demand-pull inflation. c) inflation initiated by an increase in aggregate demand because of government spending is referred to as demand-pull inflation. d) in order to avoid “crowding-out” after the government has increased government spending, the fed often decreases the money supply in order to lower the interest rates.

C)Inflation initiated by an increase in aggregate demand because of government spending is referred to as demand-pull inflation.

The right answer is C. Demand-pull inflation occurs, for example, when a government spends a great deal of money. This causes the aggregate demand (the total demand for final goods and services) to grow rapidly and eventually surpass the aggregate supply, and, consequently, prices go up (inflation).    

explanation:

texas revolution, also called war of texas independence, is the war fought from october 1835 to april 1836 between mexico and texas colonists that resulted in texas’s independence from mexico and the founding of the republic of texas (1836–45). also, the texas revolution was a rebellion of colonists from the united states and tejanos in putting up armed resistance to the centralist government of mexico. not only that, mexican soldiers were sent to gonzales, texas to take a cannon that was supposed to scare away indian attacks. however, the texans did not let the soldiers into town and fired on them, beginning the texas revolution.