A) There will be more money supply in the economy.
B) There will be less money supply in the economy.
C) There will be no impact on the money supply.
D) It depends upon the behaviour of the targeted population.
Correct Answer: A
Solution :
Government budget is an important aspect which impacts almost all macroeconomic indicators. A tax cut by the government leads to increase in savings in the banks which further leads to increase in money supply.
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