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Economics (AS & A Level) · Feb / March 2024 · Paper 12 · Question 20

9708Fiscal policy

A government has a balanced budget. It decides to increase its spending by 10%. Which increase in government revenue would produce a budget surplus?

  1. A–10%
  2. B0%
  3. C+10%
  4. D+20%

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Correct answer: D. +20%

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