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WAEC Economics 2009 Question 42

Question 42

Public Finance

Fiscal policy is associated with

  1. A.taxation and government expenditure
  2. B.re-structuring of the banks
  3. C.injection of more money into the economy
  4. D.reduction in economic activities.
Show the answer and explanation

Answer: A (taxation and government expenditure)

Explanation

Fiscal policy uses government taxation and spending to influence the economy.