ECONOMICS SS 2 (3rd term 2024/2025)

The crowding-out effect refers to:

Which of the following is/ are not true?

I. A major disadvantage of direct taxes is that they can be easily evaded.

II. To protect infant industries requires lowering import duties.

III. A deficit budget may be used to promote economic growth.

The efficient market hypothesis suggests that

The precautionary demand for money is positively related to:

Corporate bonds typically offer higher yields than government bonds because:

The concept of tax incidence refers to:

A regressive tax system is one where:

In the Capital Asset Pricing Model (CAPM), systematic risk is measured by:

Cost-push inflation is primarily caused by:

Fiscal policy involves the use of:

A progressive tax system is characterized by:

When interest rates rise, the opportunity cost of holding money

The Fisher equation states that the nominal interest rate equals:

The primary objective of public finance is to

Deflation refers to:

The quantity theory of money suggests that inflation is primarily caused by:

one of these is not a contributor to the Quantity Theory of Money.

The ability-to-pay principle of taxation suggests that:

Which of the following best describes the speculative demand for money?

The equation for money demand is represented as:

A yield curve that slopes upward indicates:

The price of a bond is inversely related to:

The term structure of interest rates refers to:

Which of the following is relevant monetary policy to stem inflationary  pressure?

Which of the following statement is/ are true of Taxation?

I. A tax is progressive if the percentage of income paid in tax varies inversely with the level of income.

II. The tax base is the proportion of income paid in tax.

III. A regressive is a tax that takes a lower percentage of income as income rises.

The Laffer Curve illustrates the relationship between:

During inflation........ gain the most

When the price level increases, the real demand for money:

The primary function of capital markets is to:

Which of the following is NOT a cost of inflation?

Which factor would NOT typically affect the demand for money?

Which of the following is NOT a characteristic of an efficient capital market?

The Consumer Price Index (CPI) measures:

. Demand-pull inflation occurs when

According to the quantity theory of money, if the velocity of money is constant and real output is fixed, an increase in money supply will lead to:

The random walk theory suggests that:

According to Keynes' liquidity preference theory, the demand for money is influenced by which three motives?

Anticipated inflation affects the economy differently from unanticipated inflation because:

Venture capital is primarily used to finance:

The transactions demand for money is primarily determined by