Economics 9708 · AS & A Level · Supply-side policy

Supply-side policy — practice question

Which policy would be most likely to enhance a country’s chances of attaining a higher long-run rate of growth?

  • Aan increase in the government’s budget deficit
  • Ban increase in tuition fees charged to university students
  • Cintervention in the foreign exchange market to raise the exchange rate
  • Dthe introduction of tax incentives to encourage households to save more

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