Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

How does a reduction in a country’s income tax rates affect its exports and imports?

  • Aexports fall; imports fall
  • Bexports fall; imports unchanged
  • Cexports unchanged; imports fall
  • Dexports unchanged; imports rise

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