Economics 0455 · IGCSE · Fiscal policy

Fiscal policy — practice question

Which measures would be likely to raise government spending and cut tax revenue?

  • AImprove health facilities for the elderly; encourage people to reduce their spending
  • BIncrease the amount of the state pension; increase VAT (sales tax)
  • CProvide free bus transport for retired people; encourage people to work beyond retirement
  • DRaise the age of retirement; decrease bus fares

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