Which of the following fiscal policy measures would be suitable for addressing a deflationary gap or deficient demand?

CA Foundation · Business Economics · MTP · September 2024
Which of the following fiscal policy measures would be suitable for addressing a deflationary gap or deficient demand?
(A) A. Reduction in Taxes
(B) B. Increase in Govt. Expenditure
(C) C. Reduction in Public Debt
(D) D. All of these

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. All of these

Topics: Public Finance

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