Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.
Each question is worth 2 marks
Governments have a number of economic targets as part of their fiscal policy.
Which of the following government actions relate predominantly to fiscal policy?
1 Decreasing interest rates in order to stimulate consumer spending
2 Reducing taxation while maintaining public spending
3 Using official foreign currency reserves to buy the domestic currency
4 Borrowing money from the capital markets and spending it on public works
A 1 only
B 1 and 3
C 2 and 4 only
D 2, 3 and 4
Answer：
C
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