Post Utme Uniport 2019 Economics Question 20

Practice objective / multiple choice question 20 from the 2019 Post Utme Uniport Economics examination.

Post Utme Uniport 2019 Economics Objective / Multiple Choice
Question 20 POST_UTME_UNIPORT • 2019 • ECONOMICS • objective

A country is experiencing a recession due to a decrease in aggregate demand. If the central bank increases the money supply, what will be the effect on the country's inflation rate?

Answer Options

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

About This Question

This is Post Utme Uniport 2019 Economics Question 20. It is one of the objective questions from the 2019 Post Utme Uniport Economics examination.

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