UPSC PYQPrelims 2021

Civil Services Examination · प्रश्न 3

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

  1. Cut in tax rates accompanied by increase in interest rate
  2. Increase in expenditure on public projects
  3. Increase in tax rates accompanied by reduction of interest rate
  4. Reduction of expenditure on public projects
उत्तर देखें और व्याख्या

उत्तर: (B) Increase in expenditure on public projects

व्याख्या

In a recession governments use expansionary fiscal policy, such as higher public spending, to boost demand.