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WAEC Economics 1996 Question 25

Question 25

Money and Inflation

Changes in the value of money can be measured by

  1. A.the distributors
  2. B.a price index
  3. C.a demand index
  4. D.a supply index
  5. E.the use of cheques
Show the answer and explanation

Answer: B (a price index)

Explanation

A price index shows changes in the general price level, and the value of money moves inversely with it.