Question 12 of 52Indian Economy

Which among the following steps is most likely to be taken at the time of an economic recession?

ACut in tax rates accompanied by increase in interest rate
BIncrease in expenditure on public projects
CIncrease in tax rates accompanied by reduction of interest rate
DReduction of expenditure on public projects

Correct Answer

The correct answer is hidden

Explanation

22 words hidden ... employment, and generates multiplier effects across the economy. By contrast, reducing expenditure would deepen the ... 27 words hidden