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WAEC Economics 2016 Question 41

Question 41

Public Finance

Fiscal policy that can control inflation will include the use of

  1. A.balanced budgeting.
  2. B.tax holidays.
  3. C.budget deficit.
  4. D.budget surplus.
Show the answer and explanation

Answer: D (budget surplus.)

Explanation

A surplus budget takes more money out of the economy than it puts in, reducing demand.