WAEC Economics 2024 Objective — Question 35
Question 35 of 50 from the West African Examinations Council (WAEC) Economics 2024 Objective paper, with the correct answer and a full explanation.
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35. One effect of inflation is that
- A. money's purchasing power will increase.
- B. the real incomes of workers will rise.
- C. both borrowers and lenders benefit from it.
- D. money's purchasing power will fall.Correct
Explanation
Inflation makes each unit of money worth less; thus, the purchasing power of money falls during inflation.
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