Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

A government cuts both the income tax payable by every earner and the level of means-tested benefits paid to people with low or no income. What is it most likely trying to achieve?

  • Aa more equitable income distribution
  • Ba reduction in the rate of inflation
  • Ca reduction in the trade deficit
  • Dan increase in the rate of economic growth

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