Economics 9708 · AS & A Level · Externalities

Externalities — practice question

Which combination of policies would be most likely to raise output?

  • Afiscal policy decrease budget deficit; monetary policy decrease interest rates
  • Bfiscal policy decrease budget deficit; monetary policy increase interest rates
  • Cfiscal policy increase budget deficit; monetary policy decrease interest rates
  • Dfiscal policy increase budget deficit; monetary policy increase interest rates

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