Economics · Macroeconomics
Which of the following policy measures does a government usually take to boost demand and support the economy in deflationary situations? I. Lowering interest rates together with cutting direct taxes II. Emphasizing savings and enhancing salaries III. Increasing government expenditure IV. Going for tapering of fiscal stimulus Select the correct answer:
- 1I and IV
- 2I and III✓
- 3III and IV
- 4I and II
Correct answer
I and III
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