Concept:Demand-pull inflation occurs when total demand for goods and services rises faster than total supply.
Explanation:Deficit financing means the government spends more than it earns in revenue.
To cover this extra spending, the government borrows money or prints more currency.
This increases the money supply in the economy.
With more money in hand, people demand more goods and services.
When this higher demand is not matched by enough supply, general prices rise.
This price rise due to excess demand is called demand-pull inflation.
The other options, like higher production costs or import duties, mainly cause cost-push inflation.
Excessive supply of foodstuff would lower prices, not increase them.
Answer:A. Deficit financing by the government.