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Economics · Oct / Nov 2017 · Paper 13 · Question 17

2281Fiscal policy

Which policy is most likely to increase the level of economic activity?

  1. Aincreasing the exchange rate
  2. Bincreasing the rate of interest
  3. Creducing government spending
  4. Dreducing the general tax level

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Correct answer: D. reducing the general tax level

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