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A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2022 · Q281 Mark

What, if decreased, will help to reduce the rate of inflation?

Abudget deficit
Bdirect taxes
Cexchange rate
Dinterest rate

✓ Correct answer

A: budget deficit

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About this question

Topic
Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2022 Paper 1 Variant 2, question 28.

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