GCE Economics 2022 Objective — Question 36
Question 36 of 50 from the General Certificate of Education (GCE) Economics 2022 Objective paper, with the correct answer and a full explanation.
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If inflation is anticipated, people would
- A. save more money
- B. spend more moneyCorrect
- C. give out more loans
- D. spend less money
Explanation
When people expect prices to rise in future, they spend more money now (stocking up on goods) before prices go up further.
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