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Economics (AS & A Level) · Oct / Nov 2021 · Paper 12 · Question 28

9708Fiscal policy

In 2012, the Indian Government stated that it aimed to reduce its budget deficit to 5.1% of GDP. Which policy is most likely to help this aim in the short run?

  1. Aa decrease in import tariffs
  2. Ba decrease in the rate of interest
  3. Can increase in the sale of state-owned assets
  4. Dan increase in government pension payments

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Correct answer: C. an increase in the sale of state-owned assets

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