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A fiscal policy instrument that can influence the demand pattern in an economy is

A fiscal policy instrument that can influence the demand pattern in an economy is
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Government spending
  • B Interest rate
  • C Income tax
  • D Tariff
Correct Answer: Option C
Explanation:
An income tax is a tax that governments impose on income generated by businesses and individuals within their jurisdiction. The higher the rate of taxation, the higher the cost of product or service. This will affect the rate of demand.

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