Economics · Macroeconomic Policy
During an economic depression, which of the following policy instruments should be ideally used?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Taxes should be increased
- 2Taxes are kept unchanged or reduced and public expenditure is increased✓
- 3Public expenditure is reduced
- 4There should be a balanced budget maintained
Correct answer
Taxes are kept unchanged or reduced and public expenditure is increased
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