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Economics · May / June 2017 · Paper 12 · Question 17

2281Fiscal policy

A government wishes to try to make the distribution of income in the country more equal. Which policy would be most likely to achieve this?

  1. Areducing housing subsidies
  2. Breducing indirect tax on food
  3. Creducing inheritance tax
  4. Dreducing tax on the dividends on stocks and shares

As printed in the paper

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Correct answer: B. reducing indirect tax on food

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