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

  • A government spending
  • B interest rate
  • C income tax
  • D tariff
jamb 2013economics

The correct answer is C. income tax

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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