Economics · Fiscal Policy
Which of the following is considered a counter-cyclical fiscal policy measure?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Reducing government debt during an economic expansion
- 2Cutting taxes during an economic recession✓
- 3Raising interest rates during high inflation
- 4Increasing government spending during an economic boom
Correct answer
Cutting taxes during an economic recession
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