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

In a recession, the appropriate policy for a government seeking a recovery in the economy would be to:
B) raise public expenditure, reduce taxes and lower interest rates
A) cut public expenditure, reduce taxes, and lower interest rates
C) raise public expenditure, raise taxes and lower interest rates
D) cut public expenditure, raise taxes and raise interest rates

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:

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Suggested Answer: B

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Trina
9 hours ago
Yes, it encourages borrowing and investment.
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Rosalind
6 days ago
Lowering interest rates is crucial too.
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Yoko
11 days ago
Not if it's temporary and aimed at recovery.
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Amalia
16 days ago
But won't raising taxes hurt people?
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Trina
21 days ago
Agreed! More public spending can create jobs.
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Yoko
26 days ago
I think option B is the best choice. It stimulates growth.
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Andra
1 month ago
Lowering interest rates is definitely a must in any recession.
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Kris
1 month ago
Cutting public expenditure is just going to make things worse!
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Merri
1 month ago
Wait, how does raising taxes help during a recession?
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Yvonne
2 months ago
Totally agree, raising public expenditure helps stimulate demand.
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Annita
2 months ago
B is the way to go for recovery!
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Jacob
2 months ago
I just can't see how cutting public expenditure would help in a recession, so I’m leaning away from A and D.
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Dannette
2 months 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.
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Isreal
2 months ago
I'm not entirely sure, but I remember something about cutting taxes to encourage spending. Maybe option A?
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Sabina
2 months ago
I think option B makes the most sense since raising public expenditure can stimulate demand during a recession, right?
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