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WAEC Economics 2013 Question 13

Question 13

Money and Inflation

The value of money is affected by the

  1. A.speculative motive.
  2. B.price level.
  3. C.precautionary motive.
  4. D.intervention of development banks.
Show the answer and explanation

Answer: B (price level.)

Explanation

When the price level rises, money buys less, so its value falls.