CIMA Fundamentals of Business Economics BA1 Question # 85 Topic 9 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 85 Topic 9 Discussion

BA1 Exam Topic 9 Question 85 Discussion:
Question #: 85
Topic #: 9

Which of the following is the most likely policy response to an economic recession?


A.

Revaluation of the domestic currency


B.

Deflationary policy to prevent rising inflationary pressure


C.

Reduce aggregate demand by raising interest rates, taxation, and reducing public expenditure.


D.

Raise aggregate demand by lowering interest rates, reducing taxation and raising public expenditure


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