CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 83 Discussion

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

Question #: 83
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: C

by Bulah at Mar 22, 2024, 12:32 AM

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5 days ago

But wouldn't raising public expenditure help stimulate the economy?

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6 days ago

Definitely B. Increasing government spending and lowering taxes and interest rates is the way to stimulate the economy during a recession.

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13 days ago

I disagree, I believe the answer is A.

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16 days ago

I think the answer is B.

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