Money and Inflation - Jamb Economics Past Questions and Answers

Question 46:

• 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 47:

• JAMB 1992

The best way to reduce the supply of money in the economy is to?

A. Increase the liquidity ratio
B. Increase the number of bank-notes and cheques produced
C. Decrease treasury bills
D. Liberalize access to credit

Question 48:

• JAMB 1992

The total amount of money in circulation includes cash?

A. And current account
B. Owned by banks and the non-bank public
C. And current acount balances owned by banks and non-bank public
D. Owned by banks, the government and the non-bank public

Question 49:

• 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 50:

• JAMB 1993

Below equilibrium, the gap between aggregate demand and the full employment level of income is called the?

A. Inflationary gap
B. Income gap
C. Unemployment gap
D. Deflationary gap