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WAEC Economics 2011 Question 10

Question 10

Money and Inflation

If the current price of an apple is twice that of last year, it implies that the value of money is

  1. A.stable.
  2. B.falling.
  3. C.rising.
  4. D.getting stronger.
Show the answer and explanation

Answer: B (falling.)

Explanation

When prices rise, each naira buys less, so the value of money falls.