Economics (AS & A Level) · Oct / Nov 2023 · Paper 13 · Question 29

A government aims to reduce unemployment through expansionary fiscal policy and borrows more from the commercial banks, increasing its borrowing requirement. What will be the result?

1. Aa decrease in the budget deficit
2. Ba decrease in the national debt
3. Can increase in the balance of payments deficit on the current account
4. Dan increase in the interest rates

As printed in the paper