Q. Which of the following action/s can be considered a part of the “fiscal stimulus” package?
1.Increasing government spending
2.Reducing tax rates
3.Discontinuing subsidies after economic recession.
Select the correct answer using the codes given below;
Answer: B
Notes:
Increasing government spending and Reducing tax rates are done to encourage and support economic growth. Hence, these are considered as a form of fiscal stimulus.
Discontinuing subsidies after economic recession is a step towards fiscal consolidation rather than fiscal stimulus.
Source: The Hindu
