Economics · Fiscal Policy and Macroeconomics
Given below are two statements: Assertion (A): A higher fiscal deficit can stimulate economic growth during recession. Reason (R): Fiscal expansion increases aggregate demand through multiplier effect. Choose the correct answer:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A is false but R is true
- 2A is true but R is false
- 3Both A and R are true but R is not correct explanation of A
- 4Both A and R are true and R is correct explanation of A✓
Correct answer
Both A and R are true and R is correct explanation of A
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