WAEC Economics 2014 Objective — Question 31
Question 31 of 50 from the West African Examinations Council (WAEC) Economics 2014 Objective paper, with the correct answer and a full explanation.
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Which of the following will increase the nominal value of national income?
- A. High rate of inflationCorrect
- B. Increase in the value of money
- C. Increase in import
- D. high rate of subsistence production
Explanation
A high rate of inflation will inflate/increase the value of national income nominally, since prices rise without necessarily reflecting real output growth.
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