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Free CFA Economics Practice Questions & Answers

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Question 721

Indirect taxes have the advantage that they:

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Question 722

Indirect taxes can also be used to:

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Question 723

A disadvantage of direct taxes is that they:

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Question 724

Welfare and social transfers are difficult to change quickly because:

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Question 725

Capital spending plans take longer to implement because:

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Question 726

Despite long lags, capital spending is valuable because:

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Question 727

Direct taxes affect behavior because they:

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Question 728

Vertical equity means:

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Question 729

Horizontal equity means:

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Question 730

A tax that is too complex violates the principle of:

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Question 731

Indirect taxes can be adjusted quickly because:

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Question 732

Direct taxes are slower to adjust because:

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Question 733

Capital spending takes longer to implement because:

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Question 734

A criticism of fiscal stimulus is that:

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Question 735

Capital spending is still valuable because:

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Question 736

Direct taxes influence behavior because they:

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Question 737

Fiscal policy cannot fully stabilize aggregate demand mainly because:

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Question 738

The recognition lag occurs because:

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Question 739

The action lag refers to:

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Question 740

The impact lag refers to:

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Question 741

Fiscal policy is difficult because forecasting models:

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Question 742

Private sector behavior can complicate fiscal policy because:

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Question 743

Raising aggregate demand toward full employment may cause:

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Question 744

A large existing budget deficit makes fiscal stimulus difficult because:

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Question 745

Fiscal expansion may be ineffective if:

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Question 746

A central bank is typically the sole supplier of:

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Question 747

Money that is not convertible into a commodity and derives value by decree is called:

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Question 748

Fiat money must be accepted in exchange for goods and services because it is:

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Question 749

Central banks abandoned gold convertibility because:

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Question 750

As suppliers of fiat currency, central banks must:

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Free CFA Economics Practice Questions & Answers

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