At the end of the previous fiscal year, a country had an outstanding national debt of $billion£850\text{ billion}$ . For the upcoming fiscal year, the government has proposed a planned expenditure of $billion£145\text{ billion}$ against a projected tax revenue of $billion£125\text{ billion}$ .

All other things being equal, which one of the following is most likely to enable the government to complete its planned expenditure and reduce its national debt?

Increasing its planned borrowing by more than $billion£20\text{ billion}$ .

Increasing its projected tax revenue by more than $billion£20\text{ billion}$ .

Increasing its projected tax revenue by $billion£20\text{ billion}$ and reducing planned borrowing by $billion£20\text{ billion}$ .

Increasing both its projected tax revenue and planned borrowing by $billion£20\text{ billion}$ .

All other things being equal, which one of the following is most likely to enable the government to complete its planned expenditure and reduce its national debt?

Increasing its planned borrowing by more than $billion£20\text{ billion}$ .

Increasing its projected tax revenue by more than $billion£20\text{ billion}$ .

Increasing its projected tax revenue by $billion£20\text{ billion}$ and reducing planned borrowing by $billion£20\text{ billion}$ .

Increasing both its projected tax revenue and planned borrowing by $billion£20\text{ billion}$ .

2.5 Fiscal policy and supply-side policies

Question 4

Markscheme

2.5 Fiscal policy and supply-side policies

Question 4

Markscheme

2.5 Fiscal policy and supply-side policies

Question 4

2.5 Fiscal policy and supply-side policies Questions

2.5 Fiscal policy and supply-side policies

Question 4

2.5 Fiscal policy and supply-side policies Questions