WAEC Economics 2023 Objective — Question 37
Question 37 of 50 from the West African Examinations Council (WAEC) 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. there is a decrease in the demand for goods and services. B. there are too many goods in circulation. C. the same amount of money buys lower quantity of goods. D. people prefer to lend than to borrow.
- A. there is a decrease in the demand for goods and services
- B. there are too many goods in circulation
- C. the same amount of money buys lower quantity of goodsCorrect
- D. people prefer to lend than to borrow
Explanation
When a large volume of money causes few goods to be bought/acquired in an economy, it is said to be inflation — the same money buys a lower quantity of goods.
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