An economy is experiencing a large deficit in the current account of its balance of payments alongside high demand-pull inflation. Which of the following policy measures is most likely to reduce both of these problems?
An increase in the rate of personal income tax
A decrease in the central bank's base interest rate
An increase in government spending on welfare benefits
A reduction in tariff barriers on imported consumer goods
68 exam-style questions on OCR A Level Economics Fiscal policy. Each one has a worked solution and a mark scheme showing where the marks go.