WAEC Economics 2022 Objective — Question 36

Question 36 of 50 from the West African Examinations Council (WAEC) Economics 2022 Objective paper, with the correct answer and a full explanation.

If inflation is anticipated, people may

A. save more money
B. spend more moneyCorrect
C. give out more loans
D. spend less money

Explanation

If inflation is anticipated (e.g. rising fuel prices), people tend to spend more money now (buy goods before prices rise further), rather than saving.

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