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Free CFA Economics Practice Questions & Answers

2,050 exam-style Economics questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

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Question 1651

A tax that is too complex violates the principle of:

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Question 1652

Indirect taxes can be adjusted quickly because:

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Question 1653

Direct taxes are slower to adjust because:

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Question 1654

Capital spending takes longer to implement because:

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Question 1655

A criticism of fiscal stimulus is that:

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Question 1656

Capital spending is still valuable because:

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Question 1657

Direct taxes influence behavior because they:

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Question 1658

Fiscal policy cannot fully stabilize aggregate demand mainly because:

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Question 1659

The recognition lag occurs because:

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Question 1660

The action lag refers to:

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Question 1661

The impact lag refers to:

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Question 1662

Fiscal policy is difficult because forecasting models:

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Question 1663

Private sector behavior can complicate fiscal policy because:

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Question 1664

Raising aggregate demand toward full employment may cause:

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Question 1665

A large existing budget deficit makes fiscal stimulus difficult because:

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Question 1666

Fiscal expansion may be ineffective if:

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Question 1667

A central bank is typically the sole supplier of:

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Question 1668

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

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Question 1669

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

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Question 1670

Central banks abandoned gold convertibility because:

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Question 1671

As suppliers of fiat currency, central banks must:

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Question 1672

A central bank acts as lender of last resort because it can:

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Question 1673

The lender-of-last-resort function helps prevent:

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Question 1674

A central bank’s role in the payments system includes:

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Question 1675

Central banks hold foreign currency and gold reserves primarily to:

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Question 1676

Selling large amounts of gold reserves could:

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Question 1677

The central bank’s highest-profile role is usually:

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Question 1678

Monetary policy refers to actions that influence:

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Question 1679

A central bank buying government bonds in open market operations will:

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Question 1680

Increased bank reserves from open market purchases typically:

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Free CFA Economics Practice Questions & Answers

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Before you go, can we ask you one thing?

Thank you