Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

Give one example of fiscal policy designed to raise aggregate demand in an economy.

  • Aincreasing expenditure by firms on skills training programmes for unskilled workers
  • Bincreasing the commercial banks’ lending ability
  • Creducing the rate of income tax for all income earners
  • Dreducing the rate of interest on loans to manufacturing companies

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