passwella.
Menu

JAMB Economics 2011 Question 27

Question 27

Money and Inflation

An increase in the circulation of money without a corresponding increase in output will lead to

  1. A.a rise in income levels
  2. B.stagflation
  3. C.deflation
  4. D.inflation.
Show the answer and explanation

Answer: D (inflation.)

Explanation

More money chasing the same quantity of goods pushes the general price level up: inflation.