Post Utme Lasu 2017 Economics Question 20

Practice objective / multiple choice question 20 from the 2017 Post Utme Lasu Economics examination.

Post Utme Lasu 2017 Economics Objective / Multiple Choice
Question 20 POST_UTME_LASU • 2017 • ECONOMICS • objective

A central bank is considering a monetary policy to reduce inflation. If the central bank increases the interest rate, what will be the effect on the money supply?

Answer Options

A. The money supply will increase.
Correct Answer B. The money supply will decrease.
C. The money supply will remain unchanged.
D. The money supply will increase at a decrea\sing rate.
Correct Answer
B
Correct Option:
The money supply will decrease.

About This Question

This is Post Utme Lasu 2017 Economics Question 20. It is one of the objective questions from the 2017 Post Utme Lasu Economics examination.

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