Post Utme Madonna University 2018 Economics Question 26

Practice objective / multiple choice question 26 from the 2018 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2018 Economics Objective / Multiple Choice
Question 26 POST_UTME_MADONNA_UNIVERSITY • 2018 • ECONOMICS • objective

The Nigerian government has implemented a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) rate. What is the likely effect of this policy on the price level?

Answer Options

Correct Answer A. The price level will increase by 10%.
B. The price level will decrease by 10%.
C. The price level will remain unchanged.
D. The price level will increase by more than 10%.
Correct Answer
A
Correct Option:
The price level will increase by 10%.

About This Question

This is Post Utme Madonna University 2018 Economics Question 26. It is one of the objective questions from the 2018 Post Utme Madonna University Economics examination.

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