Economics 0455 · IGCSE · Fiscal policy

Fiscal policy — practice question

Which combination of changes in a government budget will result in higher income inequality?

  • Adirect taxes: decrease; indirect taxes: decrease; health and education spending: increase
  • Bdirect taxes: decrease; indirect taxes: increase; health and education spending: decrease
  • Cdirect taxes: increase; indirect taxes: decrease; health and education spending: decrease
  • Ddirect taxes: increase; indirect taxes: increase; health and education spending: increase

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