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WAEC Economics 2011 Question 38

Question 38

National Income

A fall in national output will necessitate

  1. A.a rise in expenditure on imports.
  2. B.a rise in the level of savings.
  3. C.an increase in consumption expenditure.
  4. D.a rise in the standard of living.
Show the answer and explanation

Answer: A (a rise in expenditure on imports.)

Explanation

With less produced at home, the country must import more to meet its needs.