An expansionary fiscal policy is used for:

CA Foundation · Business Economics · MTP · September 2025
An expansionary fiscal policy is used for:
(A) A. Reduction in Inflation
(B) B. Increase in Exports.
(C) C. Appreciation of Currency
(D) D. Close recessionary gap

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Close recessionary gap

Topics: Public Finance

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