Which one of the following is an example of fiscal policy having a direct supply-side effect?
A reduction in the central bank base rate to lower the cost of borrowing for business investment.
A temporary reduction in the standard rate of Value Added Tax (VAT) to boost household consumption.
An increase in state funding for university research-and-development (R&D) hubs to enhance technological innovation and capacity.
A depreciation of the exchange rate to make domestic exports more competitive in international markets.
