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A-LevelEconomicsThe macroeconomy9708/12 · May/June 2021 · Q301 Mark

Which policy will not cause a reduction in the rate of inflation?

Aincreasing income tax
Breducing government spending
Creducing interest rates
Dremoving subsidies

✓ Correct answer

C: reducing interest rates

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About this question

Topic
The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2021 Paper 1 Variant 2, question 30.

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