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Economics · May / June 2016 · Paper 12 · Question 16

2281Fiscal policy

A government wishes to stimulate economic recovery. Which action will assist this?

  1. Adecreasing government investment
  2. Bdecreasing income tax
  3. Cincreasing indirect taxation
  4. Dincreasing interest rates

As printed in the paper

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Correct answer: B. decreasing income tax

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