Economics 2281 · O Level · Fiscal policy

Fiscal policy — practice question

A government chooses not to alter direct taxes but instead raises indirect taxes. What is this policy designed to achieve?

  • Ato increase the value of the exchange rate
  • Bto redistribute income from higher to lower income groups
  • Cto reduce a budget deficit
  • Dto reduce the rate of inflation

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI