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UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank Fiscal and Monetary Policy

  • question_answer
          The diagram shows a relationship between inflation and unemployment for an economy. Which of the following policies would move the economy from A to B?            

    A) Reduce interest rate and increase income tax rates

    B) Reduce interest rates and decrease income tax rates

    C) Increase interest rates and decrease income tax rates

    D) Increase interest rates and increase Income tax rates

    Correct Answer: D

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