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Economics (AS & A Level) · May / June 2023 · Paper 13 · Question 30

9708Fiscal policy

Which approach would a government be most likely to use to eliminate deflation?

  1. Aan increase in direct taxes
  2. Ban increase in interest rates
  3. Ca reduction in indirect taxes
  4. Da reduction in its budget surplus

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Correct answer: D. a reduction in its budget surplus

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