Post Utme Abu 2018 Economics Question 31

Practice objective / multiple choice question 31 from the 2018 Post Utme Abu Economics examination.

Post Utme Abu 2018 Economics Objective / Multiple Choice
Question 31 POST_UTME_ABU • 2018 • ECONOMICS • objective

An economy is experiencing a recession. The government decides to implement a fiscal policy to stimulate aggregate demand. Which of the following fiscal policy tools is most likely to be effective in this situation?

Answer Options

A. Increase government sp\ending on infrastructure projects
Correct Answer B. Reduce taxes to increase disposable income
C. Increase interest rates to reduce borrowing
D. Implement price controls to reduce inflation
Correct Answer
B
Correct Option:
Reduce taxes to increase disposable income

About This Question

This is Post Utme Abu 2018 Economics Question 31. It is one of the objective questions from the 2018 Post Utme Abu Economics examination.

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