Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25

- Free Preparation Discussions

CIMAPRA17-BA1-1 Exam - Topic 1 Question 129 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 129
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

In a recession, the appropriate policy for a government seeking a recovery in the economy would be to:

Acut public expenditure, reduce taxes, and lower interest rates

Braise public expenditure, reduce taxes and lower interest rates

Craise public expenditure, raise taxes and lower interest rates

Dcut public expenditure, raise taxes and raise interest rates

Show Suggested Answer

Suggested Answer: B

by Curtis at Jul 01, 2026, 09:05 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA1-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Jacob

I just can't see how cutting public expenditure would help in a recession, so I’m leaning away from A and D.

upvoted 0 times

...

Dannette

5 days ago

I practiced a similar question, and I feel like raising public expenditure is key, so B seems right, but I’m not 100% confident.

upvoted 0 times

...

Isreal

10 days ago

I'm not entirely sure, but I remember something about cutting taxes to encourage spending. Maybe option A?

upvoted 0 times

...

Sabina

15 days ago

I think option B makes the most sense since raising public expenditure can stimulate demand during a recession, right?

upvoted 0 times

...