Post Utme Oau 2021 Economics Question 35

Practice objective / multiple choice question 35 from the 2021 Post Utme Oau Economics examination.

Post Utme Oau 2021 Economics Objective / Multiple Choice
Question 35 POST_UTME_OAU • 2021 • ECONOMICS • objective

A government is considering implementing a policy to reduce inflation. The policy involves reducing the money supply by 10% per annum. Determine the effect of this policy on the price level if the initial price level is ₦100.

Answer Options

A. Price level decreases to ₦90
Correct Answer B. Price level decreases to ₦80
C. Price level decreases to ₦70
D. Price level remains unchanged
Correct Answer
B
Correct Option:
Price level decreases to ₦80

About This Question

This is Post Utme Oau 2021 Economics Question 35. It is one of the objective questions from the 2021 Post Utme Oau Economics examination.

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