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- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
Which action can a government take to boost overall demand within its economy?
Multiple choice question for Basic of Economics. Select an option, then review the explanation below.
Explanation
To stimulate demand in the economy, the government can reduce taxes, which puts more money into consumers' hands, encouraging spending. Planning for a surplus, promoting savings, or cutting expenditures typically reduce demand, while increasing interest rates can also dampen spending.
More Basic of Economics MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes deflation?
- 2.Under what condition can two nations benefit from engaging in international trade?
- 3.Which of the following represents a legitimate form of currency?
- 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
- 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?