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Economics · May / June 2020 · Paper 11 · Question 19

2281Government macroeconomic intervention

The government redistributes income more evenly. What is most likely to increase?

  1. Athe incentive to work
  2. Bthe level of savings
  3. Cthe need for welfare payments
  4. Dthe rate of inflation

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Correct answer: D. the rate of inflation

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