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.
- 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] B
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