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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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