Post Utme Madonna University 2025 Economics Question 31

Practice objective / multiple choice question 31 from the 2025 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2025 Economics Objective / Multiple Choice
Question 31 POST_UTME_MADONNA_UNIVERSITY • 2025 • ECONOMICS • objective

Suppose the economy is in a state of stagflation, characterized by high inflation and stagnant economic growth. The government decides to implement a monetary policy to combat inflation. Which of the following tools would be most effective in reducing inflation in this scenario?

Answer Options

A. Increase the money supply
Correct Answer B. Decrease the money supply
C. Increase interest rates
D. Decrease interest rates
Correct Answer
B
Correct Option:
Decrease the money supply

About This Question

This is Post Utme Madonna University 2025 Economics Question 31. It is one of the objective questions from the 2025 Post Utme Madonna University Economics examination.

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