Post Utme Babcock University 2017 Economics Question 39

Practice objective / multiple choice question 39 from the 2017 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2017 Economics Objective / Multiple Choice
Question 39 POST_UTME_BABCOCK_UNIVERSITY • 2017 • ECONOMICS • objective

A central bank uses monetary policy to control inflation by adjusting the money supply. If the central bank increases the money supply by 10%, what is the expected effect on the price level?

Answer Options

Correct Answer A. Increase by 10%
B. Decrease by 10%
C. No change
D. Increase by 20%
Correct Answer
A
Correct Option:
Increase by 10%

About This Question

This is Post Utme Babcock University 2017 Economics Question 39. It is one of the objective questions from the 2017 Post Utme Babcock University Economics examination.

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