JAMB Economics 2018 Objective — Question 1

Question 1 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2018 Objective paper, with the correct answer and a full explanation.

The effect of an expansionary monetary system above full employment level is

A. Deflationary
B. InflationaryCorrect
C. Balanced
D. Deficit budget

Explanation

Expanding the money supply beyond full employment output raises prices rather than output, causing inflation.

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