Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

A government chooses to follow a more reflationary fiscal policy together with a more deflationary monetary policy. Which set of changes in policy instruments would match this?

  • Agovernment expenditure: decrease; interest rate: decrease; taxation: decrease
  • Bgovernment expenditure: decrease; interest rate: decrease; taxation: increase
  • Cgovernment expenditure: increase; interest rate: increase; taxation: decrease
  • Dgovernment expenditure: increase; interest rate: increase; taxation: increase

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