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Economics · Oct / Nov 2020 · Paper 13 · Question 18

2281Fiscal policy

A government decreased the tax on all goods produced in its country. What is the most likely consequence of this?

  1. Aa decrease in exports
  2. Ban increase in imports
  3. Can increase in production
  4. Da worsening of the balance of trade in goods

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Correct answer: C. an increase in production

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