3.3 ........................................ taxes are collected by the Revenue authority from a business, which
attempts to pass on the tax to consumers in the price of goods.
Which word correctly completes this statement?
3.4 If a government has a macro-economic policy objective of expanding the overall level of economic
activity, which of the following measures would not be consistent with such an objective?
A Increasing public expenditure
B Lowering interest rates
C Increasing taxation
3.5 The currency in country X is the Krone while country Y uses the Euro. Country Y has recently
experienced an increase in its exchange rate with Country X. Which of the following effects is likely to
result in Country Y?
A A stimulus to exports in Country Y
B An increase in the costs of imports from Country X
C Reducing demand for imports from Country X
D A reduction in the rate of cost push inflation