Post Utme Summit University 2021 Economics Question 15

Practice objective / multiple choice question 15 from the 2021 Post Utme Summit University Economics examination.

Post Utme Summit University 2021 Economics Objective / Multiple Choice
Question 15 POST_UTME_SUMMIT_UNIVERSITY • 2021 • ECONOMICS • objective

The Nigerian government has implemented a policy to reduce inflation by reducing the money supply. U\sing the concept of the money multiplier, explain why the policy may not be effective in reducing inflation.

Answer Options

A. The policy will reduce the money supply, which will reduce the price level.
B. The policy will increase the money supply, which will reduce the price level.
C. The policy will have no effect on the money supply.
Correct Answer D. The policy will increase the money supply, which will increase the price level.
Correct Answer
D
Correct Option:
The policy will increase the money supply, which will increase the price level.

About This Question

This is Post Utme Summit University 2021 Economics Question 15. It is one of the objective questions from the 2021 Post Utme Summit University Economics examination.

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