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Economics › Budget, Fiscal Policy

Economics › Budget, Fiscal Policy

Consider the following actions by the Government:
1. Cutting the tax rates
2. Increasing the government spending
3. Abolishing the subsidies
In the context of economic recession, which of the above actions can be considered a part of the ‘fiscal stimulus’ package?

Options

(a)

1 and 2 only

(b)

2 only

(c)

1 and 3 only

(d)

1,2 and 3

Answer

(A)