Post Utme Achievers University 2017 Economics Question 6

Practice objective / multiple choice question 6 from the 2017 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2017 Economics Objective / Multiple Choice
Question 6 POST_UTME_ACHIEVERS_UNIVERSITY • 2017 • ECONOMICS • objective

Consider a country with a fixed money supply and a central bank that uses the money supply as a target for monetary policy. If the central bank increases the money supply, what will happen to the price level in the short run?

Answer Options

A. The price level will decrease
Correct Answer B. The price level will increase
C. The price level will remain unchanged
D. The price level will fluctuate
Correct Answer
B
Correct Option:
The price level will increase

About This Question

This is Post Utme Achievers University 2017 Economics Question 6. It is one of the objective questions from the 2017 Post Utme Achievers University Economics examination.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support