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2.5 Fiscal policy and supply-side policies

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Question 35

Which one of the following is an example of contractionary fiscal policy?

A reduction in the standard rate of Value Added Tax (VAT)

An increase in public sector investment in transport infrastructure

A decrease in the income threshold at which the top rate of income tax is paid

A decision by the central bank to sell government bonds to commercial banks

2.5 Fiscal policy and supply-side policies Questions

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