UI Post-UTME Economics 2025 (Model questions) Question 18

When the Central Bank of Nigeria raises the Monetary Policy Rate (MPR), the expected outcomes include:
I. Commercial banks raise their lending rates
II. Investment spending by firms tends to fall.
III. Aggregate demand in the economy falls
IV. The exchange rate of the naira immediately depreciates

1. A.I, II and III only
2. B.I and IV only
3. C.II, III and IV only
4. D.All of the above