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Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 14

9708Fiscal policy

What is likely to result if a government introduces a new regressive tax?

  1. AAggregate demand will increase.
  2. BEmployment opportunities will increase.
  3. CIncome equality will improve.
  4. DTax revenues will increase.

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Correct answer: D. Tax revenues will increase.

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