Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

Which mix of policies is most likely to bring inflation down when an economy is near full employment?

  • Aincreasing government spending on food subsidies and reducing import duty
  • Bincreasing government spending on road building and increasing import duty
  • Creducing government spending on training and increasing indirect taxes
  • Dreducing government spending on training and reducing the rate of interest

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