During recession the fiscal policy of the government should be directed towards

CA Foundation · Business Economics · MTP · June 2024
During recession the fiscal policy of the government should be directed towards
(A) A. Increasing the taxes and reducing the aggregate demand
(B) B. Decreasing taxes to ensure higher disposable income
(C) C. Increasing government expenditure and increasing taxes
(D) D. None of the above

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Decreasing taxes to ensure higher disposable income

Topics: Business Cycles

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