passwella.
Menu

WAEC Economics 1992 Question 21

Question 21

Money and Inflation

Which of the following is not a negative effect of inflation?

  1. A.Lenders earn less
  2. B.Pensioners and salary earners on fixed incomes suffer
  3. C.Exports tend to decline
  4. D.Savings are discouraged
  5. E.Borrowers tend to gain.
Show the answer and explanation

Answer: E (Borrowers tend to gain.)

Explanation

Borrowers gain because they repay with money worth less; this is not a harm to them.