Economics 2281 · O Level · Fiscal policy

Fiscal policy — practice question

A government is aiming to cut both its budget deficit and the level of poverty within its country. Which fiscal policy measure is most likely to help achieve both of these objectives?

  • Adecreasing the rate of progressive income tax
  • Bdecreasing government spending on welfare benefits
  • Cincreasing the rate of progressive income tax
  • Dincreasing government spending on welfare benefits

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