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What would be likely to increase inflation in any economy?

Economics
JAMB 2015
What would be likely to increase inflation in any economy?
  • A. Increase in demand
  • B. Reduce public spending
  • C. Control excessive import
  • D. Increase in direct tax
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Correct Answer: Option A
Explanation
Excess demand without a corresponding increase in supply causes inflation.
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
Your School's Whatsapp Group - Join Us now
WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now