Post Utme Unilorin 2018 Economics Question 9

Practice objective / multiple choice question 9 from the 2018 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2018 Economics Objective / Multiple Choice
Question 9 POST_UTME_UNILORIN • 2018 • ECONOMICS • objective

A government is considering a policy to reduce inflation. If the inflation rate is 10% and the interest rate is 5%, what will be the effect of increa\sing the interest rate to 10%?

Answer Options

Correct Answer A. The inflation rate will decrease.
B. The inflation rate will increase.
C. The inflation rate will remain the same.
D. The effect on the inflation rate is uncertain.
Correct Answer
A
Correct Option:
The inflation rate will decrease.

About This Question

This is Post Utme Unilorin 2018 Economics Question 9. It is one of the objective questions from the 2018 Post Utme Unilorin Economics examination.

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