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    Question

    The long-term fiscal policy aims to maintain the

    stability of which of the following? 
    A Direct tax rates Correct Answer Incorrect Answer
    B The ratio of tax revenue to national income Correct Answer Incorrect Answer
    C Indirect tax rates Correct Answer Incorrect Answer
    D The ratio of government expenditure to GDP Correct Answer Incorrect Answer

    Solution

    A stable ratio of tax revenue to national income ensures that the government's revenue grows in proportion to the overall economy, supporting consistent funding for public services without excessive tax increases.

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