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WAEC Economics 2004 Question 28

Question 28

Money and Inflation

Which of the following will be an effect of inflation?

  1. A.Wage earners will gain
  2. B.Borrowing of money will be restricted
  3. C.Money lenders will gain
  4. D.Borrowers of money will gain
Show the answer and explanation

Answer: D (Borrowers of money will gain)

Explanation

Borrowers repay with money that has lost value, so they gain during inflation.