16. Which of the following is an example of an external factor that can cause inflation?
a) Government policies
b) Technological advancements
c) Global oil prices
d) Population growth
17. Which of the following is an example of an internal factor that can cause inflation?
a) Changes in consumer preferences
b) Foreign exchange rates
c) Natural disasters
d) Changes in government regulations
18. Inflation targeting is a monetary policy framework that aims to:
a) Stabilize exchange rates
b) Control inflation within a specific target range
c) Increase government spending
d) Stimulate economic growth
19. Which of the following is an example of an indirect tax that can contribute to inflation?
a) Value Added Tax (VAT)
b) Income tax
c) Property tax
d) Capital gains tax
20. Which of the following is an example of an asset that can act as a hedge against inflation?
a) Stocks
b) Bonds
c) Cash
d) Savings accounts
