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Economics (AS & A Level) · May / June 2025 · Paper 12 · Question 22

9708Fiscal policy

A government increases direct taxation to reduce its budget deficit. How is this likely to affect the government's ability to achieve its macroeconomic objectives?

  1. Aless likely / less likely / less likely
  2. Bmore likely / less likely / more likely
  3. Cless likely / more likely / less likely
  4. Dmore likely / more likely / less likely

As printed in the paper

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Correct answer: C. less likely / more likely / less likely

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