WAEC Economics 2025 Objective — Question 36
Question 36 of 51 from the West African Examinations Council (WAEC) Economics 2025 Objective paper, with the correct answer and a full explanation.
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Other things being equal, a contraction in the amount of money in circulation will
- A. increase aggregate demand for commodities.
- B. lead to a fall in the value of money.
- C. increase in price level.
- D. cause the value of money to rise.Correct
Explanation
Reducing the money supply makes money scarcer relative to goods, raising the value (purchasing power) of money.
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