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2.5 Fiscal policy and supply-side policies

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Question 112

All other things being equal, which one of the following is most likely to lead to an increase in the national debt?

A

A rise in the level of foreign direct investment (FDI) into domestic manufacturing industries

B

The government experiencing a fall in tax revenues while keeping public expenditure unchanged, financed by issuing short-term Treasury bills

C

The central bank lowering its policy interest rate to stimulate private sector commercial borrowing

D

The government shifting its budget stance from a deficit to a balanced budget through public sector spending cuts

Markscheme

2.5 Fiscal policy and supply-side policies Questions

  1. A Level
  2. /Economics
  3. /2.5 Fiscal policy and supply-side policies

245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.

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