Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

Japan is experiencing deflation. Which government policy would not be effective in solving this problem?

  • Aencouraging domestic savings rather than consumption
  • Bincreasing incentives for business start-ups by lowering profits tax
  • Clowering interest rates and increasing the money supply
  • Dpromoting more innovation in technical industries

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