Post Utme Eksu 2018 Economics Question 20

Practice objective / multiple choice question 20 from the 2018 Post Utme Eksu Economics examination.

Post Utme Eksu 2018 Economics Objective / Multiple Choice
Question 20 POST_UTME_EKSU • 2018 • ECONOMICS • objective

A country is experiencing a recession, and the government decides to implement a fiscal policy to stimulate the economy. The government increases government sp\ending by ₦100 billion and cuts taxes by ₦50 billion. What is the effect of this fiscal policy on aggregate demand?

Answer Options

Correct Answer A. The fiscal policy will increase aggregate demand
B. The fiscal policy will decrease aggregate demand
C. The fiscal policy will have no effect on aggregate demand
D. The fiscal policy will increase aggregate demand, but the effect will be temporary
Correct Answer
A
Correct Option:
The fiscal policy will increase aggregate demand

About This Question

This is Post Utme Eksu 2018 Economics Question 20. It is one of the objective questions from the 2018 Post Utme Eksu Economics examination.

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