Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

Which fiscal policy combination would lower both the inflation rate and income inequality?

  • Asubsidies on food and public transport increase; indirect taxes decrease; direct taxes decrease
  • Bsubsidies on food and public transport increase; indirect taxes increase; direct taxes decrease
  • Csubsidies on food and public transport increase; indirect taxes decrease; direct taxes increase
  • Dsubsidies on food and public transport decrease; indirect taxes increase; direct taxes increase

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