Effects of inflation - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 1981

Inflation is likely to benefit?

A. Persons with bank savings
B. Persons employed in financial houses
C. Debtors
D. Persons who lived on fixed pension funds
E. Creditors

Question 2:

• JAMB 1987

If inflation is anticipated to continue?

A. People will lose confidence in goods
B. Lenders will demand higher interest rate
C. The growth of full employment output will be accelerated
D. People will want to hold more money

Question 3:

• JAMB 1991

An effect of inflation is that it?

A. Discourages trade by barter
B. Favours debtors at the expense of creditors
C. Increases the real income of salary earners
D. Increases the value of a country's exports

Question 4:

• JAMB 1992

To reduce the high rate of inflation in the economy, the government should?

A. Increase taxes and have a budget surplus
B. Increase taxes and have a budget defilicit
C. Decrease taxes and have a budget defilicit
D. Decrease taxes and have a balance budget

Question 5:

• JAMB 1999

Inflation which is caused mainly increases in the prices of factors of production is described as?

A. Cost-push inflation
B. Demand-pull inflation
C. Crawling inflation
D. Spiral inflation