Which of the following is inflationary?

An increase in government expenditure is inflationary. Inflation is a general increase in the prices of goods and services in an economy. When the government increases its expenditure, it injects more money into the economy, which can lead to an increase in demand for goods and services. If the supply of goods and services does not increase to meet the demand, prices will rise, leading to inflation. This is known as demand-pull inflation, where excess demand drives up prices. On the other hand, an increase in taxation and an increase in savings lead to a decrease in consumer spending, which can reduce demand and lower prices, resulting in deflation. A decrease in money supply also reduces demand and can lead to deflation. Therefore, out of the options given, an increase in government expenditure is inflationary.