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O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2020 · Q191 Mark

The government redistributes income more evenly. What is most likely to increase?

Athe incentive to work
Bthe level of savings
Cthe need for welfare payments
Dthe rate of inflation

✓ Correct answer

D: the rate of inflation

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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 2020 Paper 1 Variant 1, question 19.

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