A measure that can be adopted to correct a country’s balance of payments deficit is
A. Allow the currency to appreciate to encourage imports. B. Allow the currency to depreciate to encourage imports C. Adopt import substitution strategy D. Restrict trade with all countries Correct Answer: Option C = Adopt import substitution...
A floating exchange rate means that the exchange rate is fixed by the
A. Central bank of the country B. Forces of demand and supply C. International monetary fund (IMF) D. Ministry of Finance Correct Answer: Option B = Forces of demand and supply
People who dispose of their assets are expected to pay
A. value-added tax B. capital gains tax C. expenditure tax D. sales tax Correct Answer: Option B = capital gains tax
In order to enable the government of a country to increase its tax revenue; it will be advisable for it to increase taxes on
A. Textile materials with elastic demand B. Alcoholic beverages with inelastic demand C. Agricultural products with inelastic supply D. Luxury goods with elastic supply Correct Answer: Option A = Textile materials with elastic...
When a government cuts down her expenditure to reduce inflation; she has embarked on
A. A restrictive Fiscal policy. B. An expansionary monetary policy. C. Physical policy. D. Implementing budget deficit Correct Answer: Option A = A restrictive Fiscal policy.Products
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