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JAMB Economics 1994 Question 37

Question 37

Money and Inflation

Inflation in the Nigerian economy may be fuelled by increase in

  1. A.the dollar price of crude oil
  2. B.the sale of company shares
  3. C.government expenditure
  4. D.sale of government bonds
Show the answer and explanation

Answer: C (government expenditure)

Explanation

More government spending adds to aggregate demand and pushes prices up.