Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

In 2015, the World Bank agreed to provide Angola with a loan of $650 m to support economic stabilisation. The Bank stated that Angola had to adopt a fiscal policy that would promote diversification in its economy. Which policy would satisfy this requirement?

  • Athe lowering of interest rates to encourage investment in solar power
  • Bthe relaxing of regulations to allow the development of a new hydro-power project
  • Cthe spending of the loan supporting its oil industry after oil prices collapsed
  • Dthe subsidising of a partnership with a French company to establish a chain of tourist hotels

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI