Post Utme Mountain Top University 2024 Economics Question 24

Practice objective / multiple choice question 24 from the 2024 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2024 Economics Objective / Multiple Choice
Question 24 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2024 • ECONOMICS • objective

A country's inflation rate is 5% per annum. If the country's central bank increases the money supply by 10% in a \single year, what will be the effect on the inflation rate?

Answer Options

A. The inflation rate will decrease by 5%.
B. The inflation rate will increase by 5%.
C. The inflation rate will remain unchanged.
Correct Answer D. The inflation rate will increase by 10%.
Correct Answer
D
Correct Option:
The inflation rate will increase by 10%.

About This Question

This is Post Utme Mountain Top University 2024 Economics Question 24. It is one of the objective questions from the 2024 Post Utme Mountain Top University Economics examination.

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