Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

During 2018, the United States (US) government lowered direct taxes for consumers and businesses. What effects are likely to result from these changes on consumption, investment and national output?

  • Aconsumption: decrease; investment: decrease; national output: decrease
  • Bconsumption: decrease; investment: increase; national output: increase
  • Cconsumption: increase; investment: decrease; national output: decrease
  • Dconsumption: increase; investment: increase; national output: increase

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