WAEC Economics 2013 Objective — Question 17
Question 17 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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Why would an individual increase his level of consumption during inflationary periods?
- A. The real value of any amount saved falls over timeCorrect
- B. Interest rates are generally low
- C. There are varieties of goods to buy
- D. Wages and salaries stagnate during inflation
Explanation
During inflation, saving is not advisable because money loses its value quickly, so people consume more.
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