Post Utme Esut 2025 Economics Question 36

Practice objective / multiple choice question 36 from the 2025 Post Utme Esut Economics examination.

Post Utme Esut 2025 Economics Objective / Multiple Choice
Question 36 POST_UTME_ESUT • 2025 • ECONOMICS • objective

Consider a small open economy with a fixed exchange rate. If the economy experiences an increase in aggregate demand, what will happen to the balance of payments?

Answer Options

A. The balance of payments will improve due to increased exports.
Correct Answer B. The balance of payments will worsen due to increased imports.
C. The balance of payments will remain unchanged.
D. The balance of payments will improve due to increased imports.
Correct Answer
B
Correct Option:
The balance of payments will worsen due to increased imports.

About This Question

This is Post Utme Esut 2025 Economics Question 36. It is one of the objective questions from the 2025 Post Utme Esut Economics examination.

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