Post Utme Lautech 2025 Economics Question 14

Practice objective / multiple choice question 14 from the 2025 Post Utme Lautech Economics examination.

Post Utme Lautech 2025 Economics Objective / Multiple Choice

Question 14 POST_UTME_LAUTECH • 2025 • ECONOMICS • objective

A country's inflation rate is 5% and its interest rate is 10%. If the central bank wants to reduce inflation, what will be the effect on the interest rate?

Answer Options

Correct Answer A. Interest rate will increase

B. Interest rate will decrease

C. Interest rate will remain unchanged

D. Interest rate will be zero

Correct Answer

Correct Option:

Interest rate will increase

About This Question

This is Post Utme Lautech 2025 Economics Question 14. It is one of the objective questions from the 2025 Post Utme Lautech Economics examination.

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