Post Utme Ui 2025 Economics Question 2

Practice objective / multiple choice question 2 from the 2025 Post Utme Ui Economics examination.

Post Utme Ui 2025 Economics Objective / Multiple Choice
Question 2 POST_UTME_UI • 2025 • ECONOMICS • objective

A country's balance of payments account shows a trade deficit of $100 million. If the country's exchange rate is fixed at $1 = ₦200, what is the likely effect on the domestic price level?

Answer Options

Correct Answer A. The domestic price level will increase.
B. The domestic price level will decrease.
C. The domestic price level will remain unchanged.
D. The effect on the domestic price level is uncertain.
Correct Answer
A
Correct Option:
The domestic price level will increase.

About This Question

This is Post Utme Ui 2025 Economics Question 2. It is one of the objective questions from the 2025 Post Utme Ui Economics examination.

View More Post Utme Ui 2025 Economics Questions More Post Utme Ui Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support