What is the primary goal of countercyclical fiscal policy in budgeting?

CA Foundation · Business Economics · MTP · June 2024
What is the primary goal of countercyclical fiscal policy in budgeting?
(A) A. Maximizing government revenue.
(B) B. Stabilizing the economy during economic downturns.
(C) C. Minimizing government intervention.
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Stabilizing the economy during economic downturns.

Topics: Public Finance

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