CFA Practice Question
In an economic downturn countercyclical fiscal policy advocates which of the following changes to spending and taxation, respectively?
A. decrease; increase
B. increase; decrease
C. increase; increase
Explanation: Increase spending and decrease tax (i.e., run a fiscal deficit).
User Contributed Comments 3
| User | Comment |
|---|---|
| Sheeb | "countercyclical" tripped me up. |
| JMORALES | Sheeb Me Too! |
| thebkr7 | Same here. Came back 3 times xD |