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O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2016 · Q161 Mark

A government wishes to stimulate economic recovery. Which action will assist this?

Adecreasing government investment
Bdecreasing income tax
Cincreasing indirect taxation
Dincreasing interest rates

✓ Correct answer

B: decreasing income tax

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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 2016 Paper 1 Variant 1, question 16.

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