24. According to J. M. Keynes, _ is the most important determinant of investment behaviour. (A) low interest rate (B) tax holidays (C) profit expectation (D) rapid innovation 25. Which of the following components of aggregate demand is most volatile? (A) consumption expenditure (B) investment expenditure (C) government expenditure (D) net exports 26. Other things being equal, there is a direct relationship between _ and saving. (A) inflation rate (B) dependency ratio (C) interest rate (D) personal income tax 27. Which is of the following statements is true? (A) Existing stock capital tends to encourage investment. (B) Increasing taxes and levies on corporate profits encourage investment. (C) Rapid technical progress could deter investment expenditure. (D) Low user cost of capital may stimulate investment. 28. The purchase of sixty trays of Hebron yoghurt by the CU Shopping Mall is an example of _. (A) fixed investment (B) sundry investment (C) inventory investment (D) replacement investment 29. Which of the following aids a country’s capital formation the most? (A) replacement investments (B) fixed investments (C) emigration of human capital (D) portfolio investment 30. may boost saving and contribute to financial inclusion, (A) Increased use of mobile telephony technologies (B) Availability of saving facilities (C) Financial literacy (D) All of the above SECTION B (COMPULSORY 10 MARKS) 1. Given the disposable and consumption levels of individuals A to in the table below, calculate the savings, APC, APS, MPC, and MPS for cach situation. (10 marks) Disposable Income — | Consumption | Savings | APC | APS | MPC | MPS A [Ni300 Ni,500 Nf | B 2,500 'N2,000 c 'N3,500 'N3,500 [> ‘N4,000 3,000 _ 'N5,000 4,000 SECTION C ANSWER TWO QUESTIONS FROM THIS SECTION 2. Distinguish between the following pairs of terms on public finance and taxation a, Government expenditure and government revenue 3 marks) b. ‘Tax evasion and tax avoidance GB marks) ©. Government final consumption spending and government investment marks) 4. Tax base and tax rate B marks)