O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2013 · Q231 Mark

A government wishes to use a fiscal policy measure. What could it do?

Aincrease the money in circulation

Bput a quota on imports

Craise direct taxes

Draise interest rates

✓ Correct answer

C: raise direct taxes

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About this question

Topic: Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2013 Paper 1 Variant 1, question 23.

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