Economics JAMB

The high rate of inflation in Nigeria can be attributed to?

A. increasing cost of production
B. the appreciation of the naira
C. decreasing cost of production
D. high capacity utilization

Correct Answer:

Option A – increasing cost of production

Explanation

Increase in the cost of production would lead to a rise in prices. And this has been a major cause of inflation in Nigeria, as plenty money would be used to purchase very few goods

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