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WAEC Economics 2020 Question 36

Question 36

Money and Inflation

Money would cease to be a good store of value when

  1. A.prices of goods and services are falling slowly.
  2. B.there is high level of unemployment.
  3. C.prices of goods and services are rising rapidly.
  4. D.prices of goods and services are rising slowly.
Show the answer and explanation

Answer: C (prices of goods and services are rising rapidly.)

Explanation

Rapid inflation quickly destroys the value of money that is kept.