A government reduces the rate of corporation tax from 25% to 18%.
This policy is most likely intended to
reduce domestic savings.
enhance the geographical mobility of labour.
discourage foreign direct investment (FDI).
incentivise capital investment and supply-side growth.
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.