Post Utme Lead City University 2021 Economics Question 14

Practice objective / multiple choice question 14 from the 2021 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2021 Economics Objective / Multiple Choice
Question 14 POST_UTME_LEAD_CITY_UNIVERSITY • 2021 • ECONOMICS • objective

A central bank implements a monetary policy aimed at reducing inflation. If the initial inflation rate is 10% and the central bank reduces the money supply by 5%, what is the expected effect on the inflation rate?

Answer Options

Correct Answer A. Inflation rate decreases to 5%
B. Inflation rate remains at 10%
C. Inflation rate increases to 15%
D. Inflation rate decreases to 8%
Correct Answer
A
Correct Option:
Inflation rate decreases to 5%

About This Question

This is Post Utme Lead City University 2021 Economics Question 14. It is one of the objective questions from the 2021 Post Utme Lead City University Economics examination.

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