Post Utme Rhema University 2022 Economics Question 25

Practice objective / multiple choice question 25 from the 2022 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2022 Economics Objective / Multiple Choice

Question 25 POST_UTME_RHEMA_UNIVERSITY • 2022 • ECONOMICS • objective

A government is considering implementing a value-added tax (VAT) to raise revenue. What is the likely effect of the VAT on the country's inflation rate?

Answer Options

Correct Answer A. The inflation rate will increase.

B. The inflation rate will decrease.

C. The inflation rate will remain unchanged.

D. The inflation rate will be unaffected.

Correct Answer

Correct Option:

The inflation rate will increase.

About This Question

This is Post Utme Rhema University 2022 Economics Question 25. It is one of the objective questions from the 2022 Post Utme Rhema University Economics examination.

View More Post Utme Rhema University 2022 Economics Questions More Post Utme Rhema University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Chat with Support