A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2020 · Q281 Mark
Which combination correctly classifies an expansionary fiscal measure and its impact on a budget deficit? fiscal policy | budget deficit ---|--- A increased quantitative easing | unchanged B increased welfare spending | increased C lower income tax | reduced D lower interest rates | unchanged
Afiscal policy: increased quantitative easing, budget deficit: unchanged
Bfiscal policy: increased welfare spending, budget deficit: increased
Cfiscal policy: lower income tax, budget deficit: reduced
Dfiscal policy: lower interest rates, budget deficit: unchanged
✓ Correct answer
B: fiscal policy: increased welfare spending, budget deficit: increased
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