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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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