Answer to Question #290857 in Macroeconomics for fdf

Question

In 2011 the Egyptian Government increased the top rate of income tax. What is likely to have been the main aim of this policy measure?

A   a reallocation of resources from producing necessities to producing luxury products

B   a redistribution of income from the rich to the poor

C   a reduction in the deficit on the current account of the balance of payments

D   a reduction in the level of cost-push inflation

Answer 1

C   a reduction in the deficit on the current account of the balance of payments