NECO Economics 2023 Objective — Question 37
Question 37 of 50 from the National Examinations Council (NECO) Economics 2023 Objective paper, with the correct answer and a full explanation.
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An indication that there is inflation in a country is that A. the demand for goods and services increases B. there are too many goods in circulation C. the same amount of money buys a lower quantity of goods D. people prefer to lend than to borrow
- A. the demand for goods and services increases
- B. there are too many goods in circulation
- C. the same amount of money buys a lower quantity of goodsCorrect
- D. people prefer to lend than to borrow
Explanation
Inflation is a persistent increase in the general price level, which reduces the value/worth of money, so the same amount of money buys fewer goods than before.
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