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Economics (AS & A Level) · Oct / Nov 2024 · Paper 11 · Question 22

9708Fiscal policy

Which combination of fiscal and monetary policies would certainly be expansionary?

  1. Agovernment spending decrease; taxes decrease; money supply decrease
  2. Bgovernment spending decrease; taxes increase; money supply decrease
  3. Cgovernment spending increase; taxes decrease; money supply increase
  4. Dgovernment spending increase; taxes increase; money supply increase

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Correct answer: C. government spending increase; taxes decrease; money supply increase

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