Post Utme Futo 2018 Economics Question 36

Practice objective / multiple choice question 36 from the 2018 Post Utme Futo Economics examination.

Post Utme Futo 2018 Economics Objective / Multiple Choice
Question 36 POST_UTME_FUTO • 2018 • ECONOMICS • objective

Consider a country with a fixed money supply and a moderate rate of inflation. If the central bank decides to increase the money supply by 10%, what will be the effect on the price level, assuming the velocity of money remains cons\tant?

Answer Options

Correct Answer A. The price level will increase by 10%
B. The price level will decrease by 10%
C. The price level will remain unchanged
D. The price level will increase by 20%
Correct Answer
A
Correct Option:
The price level will increase by 10%

About This Question

This is Post Utme Futo 2018 Economics Question 36. It is one of the objective questions from the 2018 Post Utme Futo Economics examination.

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