Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

In 2012, the Indian Government announced that it intended to cut its budget deficit to 5.1% of GDP. Which policy would be most likely to support this objective in the short run?

  • Aa decrease in import tariffs
  • Ba decrease in the rate of interest
  • Can increase in the sale of state-owned assets
  • Dan increase in government pension payments

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