If inflation is anticipated, people may

Assessment: WAEC SSCE - Economics - 2022 (Objective) Subject: Economics

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If inflation is anticipated, people may
Answer Details
If inflation is anticipated, people may tend to spend more money. This is because they believe that prices will rise in the future, and they want to buy goods and services now while they are still relatively cheaper. As a result, there is an increase in demand for goods and services, which can drive up prices further and exacerbate inflation. However, it's worth noting that different people may react differently to anticipated inflation, and some may choose to save more money or spend less money as a precautionary measure.
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