Post Utme Unn 2021 Economics Question 16

Practice objective / multiple choice question 16 from the 2021 Post Utme Unn Economics examination.

Post Utme Unn 2021 Economics Objective / Multiple Choice

Question 16 POST_UTME_UNN • 2021 • ECONOMICS • objective

Consider a country with a fixed exchange rate regime. If the country's central bank decides to increase the money supply by 10%, what will be the effect on the balance of payments?

A. The balance of payments will improve due to increased exports.

Correct Answer B. The balance of payments will worsen due to increased imports.

C. The balance of payments will remain unchanged.

D. The balance of payments will improve due to increased imports.

Correct Answer

Correct Option:

The balance of payments will worsen due to increased imports.

This is Post Utme Unn 2021 Economics Question 16. It is one of the objective questions from the 2021 Post Utme Unn Economics examination.

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