Money and Inflation - Jamb Economics Past Questions and Answers

Question 36:

• JAMB 1986

Deflation is a persistent fall in the general price level and is usually caused by?

A. A reduction in total demand
B. An increase in government spending
C. An increase in the money supply
D. An increase in aggregate demand

Question 37:

• JAMB 1986

Which of the following causes of inflation is related to demand-pull inflation?

A. Low productivity on farms and in firms
B. Poor storage facilities
C. Poor distribution system
D. Increase in expenditure on construction

Question 38:

• JAMB 1987

In the keynesian model?

A. The demand for money is inversely related to the rate of interest
B. Investment is directly related to the rate of interest
C. Investment is not related to the rate of interest to the rate of interest
D. The demand for money is directly related to the rate of interest

Question 39:

• 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 40:

• JAMB 1988

In any economy, what is used as money is determined by?

A. Government acceptance commodity standard
B. Government acceptance of an inconvertible paper standard
C. Laws and customs
D. Its use as a store of value