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JAMB Economics 2013 Question 46

Question 46

Public Finance

A fiscal policy instrument that can influence the demand pattern in an economy is

  1. A.government spending.
  2. B.interest rate.
  3. C.income tax.
  4. D.tariff.
Show the answer and explanation

Answer: C (income tax.)

Explanation

Income tax changes people's disposable income, and so changes how much and what they demand.