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Economics (AS & A Level) · May / June 2023 · Paper 33 · Question 23

9708Fiscal policy

Which combination of policies is most likely to increase output?

  1. Adecrease budget deficit; decrease interest rates
  2. Bdecrease budget deficit; increase interest rates
  3. Cincrease budget deficit; decrease interest rates
  4. Dincrease budget deficit; increase interest rates

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Correct answer: C. increase budget deficit; decrease interest rates

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