A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2025 · Q221 Mark
A government increases direct taxation to reduce its budget deficit. How is this likely to affect the government's ability to achieve its macroeconomic objectives? [Figure 22.1]
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Aless likely, less likely, less likely
Bmore likely, less likely, more likely
Cless likely, more likely, less likely
Dmore likely, more likely, less likely
✓ Correct answer
C: less likely, more likely, less likely
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