Government budget and public debts - Jamb Economics Past Questions and Answers

Question 21:

• JAMB 2000

Public debt is composed of?

A. Internal debts and World Bank loans
B. Money owed to local and foreign contractors
C. Internal and external debts
D. Loans granted by IMF and ADB

Question 22:

• JAMB 2001

National debts is an expected outcome of?

A. Deficit budget
B. Consolidation budget
C. Balanced budget
D. Surplus budget

Question 23:

• JAMB 2002

A deficit budget can be used to?

A. Stimulate recovery from a trade depression
B. Protect the economy from inflation
C. Starve the economic of funds for economic development
D. Provide measures to remedy the balance of payments

Question 24:

• JAMB 2004

If budget deficits are financed by borrowing the crowing-out effect can be offset by an increase in

A. Government expenditure
B. Savings
C. Interest rates
D. Exchange rates

Question 25:

• JAMB 2004

One of the causes of the present high rate of inflation in Nigeria is

A. Increasing budget surplus
B. Increasing factor costs
C. Exchange rate appreciation
D. High capacity utilization