WAEC Economics 2016 Objective — Question 41
Question 41 of 50 from the West African Examinations Council (WAEC) Economics 2016 Objective paper, with the correct answer and a full explanation.
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41. Fiscal policy that can control inflation will include the use of (a) balanced budgeting (b) tax holidays (c) budget deficit (d) budget surplus
- A. balanced budgeting
- B. tax holidays
- C. budget deficit
- D. budget surplusCorrect
Explanation
Budget surplus is a situation in which expenditure is less than revenue. This means the government withdraws more money from the economy than it injects, reducing inflation.
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