Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

When a government cuts the rate of direct income tax and reduces the external value of its currency, which row shows the effects of these policies?

  • Afiscal policy: contractionary; monetary policy: expansionary; supply-side policy: contractionary
  • Bfiscal policy: expansionary; monetary policy: contractionary; supply-side policy: expansionary
  • Cfiscal policy: expansionary; monetary policy: expansionary; supply-side policy: contractionary
  • Dfiscal policy: expansionary; monetary policy: expansionary; supply-side policy: expansionary

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