ECONOMICS SS 2 (3rd term 2024/2025)

Corporate bonds typically offer higher yields than government bonds because:

Cost-push inflation is primarily caused by:

Anticipated inflation affects the economy differently from unanticipated inflation because:

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

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

The efficient market hypothesis suggests that

The concept of tax incidence refers to:

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

Venture capital is primarily used to finance:

The primary function of capital markets is to:

A regressive tax system is one where:

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

. Demand-pull inflation occurs when

When interest rates rise, the opportunity cost of holding money

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

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 term structure of interest rates refers to:

Which factor would NOT typically affect the demand for money?

The random walk theory suggests that:

Fiscal policy involves the use of:

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

The Laffer Curve illustrates the relationship between:

The equation for money demand is represented as:

The precautionary demand for money is positively related to:

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

The crowding-out effect refers to:

The Fisher equation states that the nominal interest rate equals:

Deflation refers to:

The Consumer Price Index (CPI) measures:

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

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

Which of the following is NOT a cost of inflation?

A progressive tax system is characterized by:

The price of a bond is inversely related to:

The transactions demand for money is primarily determined by

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:

A yield curve that slopes upward indicates:

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

The primary objective of public finance is to

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.