Which of the following measures is used by the Govt. to address the economic depression ?
Expansion of government spending and public works raises aggregate demand during an economic depression. Higher tax rates reduce disposable income, while lower interest…
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Which of the following measures is used by the Govt. to address the economic depression ?
Answer and explanation
Correct answer A
Expansion of government spending and public works raises aggregate demand during an economic depression. Higher tax rates reduce disposable income, while lower interest rates normally encourage spending and investment rather than increasing savings.
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Madhya Pradesh SET (MP SET)