CFA Practice Question

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
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