A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Oct/Nov 2025 · Q291 Mark

What is the effect of a cut in a country's income tax rates on its exports and imports?

Aexports: fall, imports: fall

Bexports: fall, imports: unchanged

Cexports: unchanged, imports: fall

Dexports: unchanged, imports: rise

✓ Correct answer

D: exports: unchanged, imports: rise

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Topic: Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2025 Paper 1 Variant 2, question 29.

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