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JAMB Economics 2020 Objective — Question 31

Question 31 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2020 Objective paper, with the correct answer and a full explanation.

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An example of an expansionary fiscal policy action is a

  • A. decrease in the corporate profit tax ratesCorrect
  • B. decrease in welfare payments
  • C. purchase of government securities
  • D. decrease in the bank rate

Explanation

Cutting corporate profit tax rates is an expansionary fiscal policy aimed at boosting investment/spending.

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