WAEC Economics 2023 Question 37

Question 37

Money and Inflation

An indication that there is inflation in a country is that

  1. A.there is a decrease in the demand for goods and services.
  2. B.there are too many goods in circulation.
  3. C.the same amount of money buys lower quantity of goods.
  4. D.people prefer to lend than to borrow.
Show the answer and explanation

Answer: C (the same amount of money buys lower quantity of goods.)

Explanation

Inflation reduces what a given sum of money can buy.