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WAEC Economics 2013 Objective — Question 13

Question 13 of 50 from the West African Examinations Council (WAEC) Economics 2013 Objective paper, with the correct answer and a full explanation.

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The value of money is affected by the

  • A. speculative motive
  • B. price levelCorrect
  • C. precautionary motive
  • D. intervention of development banks

Explanation

The value of money is greatly affected by the price level: the higher the price level, the lower the value of money, and vice versa.

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