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