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A-LevelEconomicsGovernment macroeconomic intervention9708/33 · Oct/Nov 2017 · Q301 Mark

During year 1, a government announces a temporary one-year reduction in the level of indirect taxation balanced by an equivalent temporary one-year increase in direct taxation.

  1. 30What is most likely to be the impact on household saving in year 1 and in year 2? impact on household saving in year 1 | impact on household saving in year 2 A decrease | decrease B decrease | increase C increase | decrease D increase | increase[1]

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Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

  1. [1] B

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About this question

Topic
Government macroeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, Oct/Nov 2017 Paper 3 Variant 3, question 30.

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