passwella.
Menu

WAEC Economics 2010 Question 35

Question 35

Money and Inflation

In which of the following ways has inflation adversely affected your country's economy?

  1. A.Increase in money supply
  2. B.A fall in real income
  3. C.Appreciation in the value of money
  4. D.Increased employment.
Show the answer and explanation

Answer: B (A fall in real income)

Explanation

Rising prices reduce what fixed money incomes can buy, so real income falls.