Economics (AS & A Level) · May / June 2021 · Paper 11 · Question 28
9708Price stability
Japan is suffering from deflation. Which government policy would not help to overcome this problem?
- Aencouraging domestic savings rather than consumption
- Bincreasing incentives for business start-ups by lowering profits tax
- Clowering interest rates and increasing the money supply
- Dpromoting more innovation in technical industries
As printed in the paper
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Correct answer: A. encouraging domestic savings rather than consumption
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