Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

If no offsetting changes occur, what will lead to an increase in a government’s fiscal deficit?

  • Aa decrease in household saving
  • Ba decrease in interest rates on government bonds
  • Ca decrease in private sector investment
  • Da decrease in the country’s trade deficit

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