WAEC Economics 2025 Objective — Question 37
Question 37 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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Inflation will usually have a negative effect on
- A. borrowers.Correct
- B. balance of payments.
- C. shareholders' dividends.
- D. sales revenue of firms.
Explanation
During inflation, borrowers actually benefit because they repay loans with money that has fallen in value; per the answer key, borrowers lose because the value of money borrowed has fallen by the time it is repaid, disadvantaging lenders more, but the official key marks 'borrowers' as the correct negative-effect option.
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