CAIE A-Level Economics A2 11.1.3 Switching Vs Reducing Policies Questions

Practise distinguishing policies that redirect spending to domestic output from those that reduce total spending and evaluating elasticity and employment effects.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • Distinguish expenditure-switching policies from expenditure-reducing policies and evaluate their effects on the balance of payments.

CAIE A-Level Economics A2 11.1.3 Switching Vs Reducing Policies Questions question 1

[Maximum number: 1]

What is not an example of an expenditure-reducing policy?

A

a decrease in government spending

B

a depreciation of the exchange rate

C

an increase in direct taxes

D

an increase in interest rates

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