Post Utme Abu 2025 Economics Question 8

Practice objective / multiple choice question 8 from the 2025 Post Utme Abu Economics examination.

Post Utme Abu 2025 Economics Objective / Multiple Choice
Question 8 POST_UTME_ABU • 2025 • ECONOMICS • objective

A country is experiencing a recession. The government has introduced a fiscal policy to stimulate the economy. The policy includes increa\sing government sp\ending and cutting taxes. What is the likely effect of this policy on the overall inflation rate?

Answer Options

A. The policy will lead to an increase in the overall inflation rate.
Correct Answer B. The policy will lead to a decrease in the overall inflation rate.
C. The policy will have no effect on the overall inflation rate.
D. The policy will lead to a decrease in the overall unemployment rate.
Correct Answer
B
Correct Option:
The policy will lead to a decrease in the overall inflation rate.

About This Question

This is Post Utme Abu 2025 Economics Question 8. It is one of the objective questions from the 2025 Post Utme Abu Economics examination.

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