Question: What is most likely to be increased by a policy of increased direct taxes and lower government spending?
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a.the rate of inflation
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b.the level of unemployment
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c.the balance of payments deficit
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d.the budget deficit
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e.None of these
Answer: b
 the rate of inflation b) the level of unemployment c) the balance of payments deficit d) the budget deficit e) None of these Ans. b) the level of unemployment
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