Question: What is likely to increase fiscal drag?
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a.an increase in the rate of inflation
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b.a switch from direct to indirect taxes
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c.the indexation of income tax allowances
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d.a negative rate of economic growth
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e.none of these
Answer: a
 an increase in the rate of inflation b) a switch from direct to indirect taxes c) the indexation of income tax allowances d) a negative rate of economic growth e) none of these Ans. a) an increase in the rate of inflation
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