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O-LevelEconomicsGovernment and the macroeconomy2281/11 · Oct/Nov 2010 · Q281 Mark

Which policy would be most likely to reduce the rate of inflation in Malaysia?

Aan increase in income tax
Ban increase in sales tax (GST)
Can increase in the budget deficit
Dan increase in the money supply

✓ Correct answer

A: an increase in 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, Oct/Nov 2010 Paper 1 Variant 1, question 28.

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