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CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 83 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 83
Topic #: 1
[All CIMAPRA17-BA1-1 Questions]

In a recession, the appropriate policy for a government seeking a recovery in the economy would be to:

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Suggested Answer: C

by Bulah at Mar 22, 2024, 12:32 AM

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Leigha
20 days ago
I'm going with B, but I have to say, the idea of the government raising interest rates during a recession is just laughable. That's like trying to put out a fire with gasoline.
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Deeann
23 days ago
B is the obvious choice here. The government needs to put more money into the economy, not take it out. Can't believe they're even giving us D as an option!
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Velda
10 days ago
B) raise public expenditure, reduce taxes and lower interest rates
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Blondell
14 days ago
A) cut public expenditure, reduce taxes, and lower interest rates
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Jeniffer
25 days ago
Haha, D is just plain crazy! Who would raise taxes and interest rates during a recession? That's the perfect way to tank the economy even further.
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Luis
7 days ago
B) raise public expenditure, reduce taxes and lower interest rates
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King
21 days ago
A) cut public expenditure, reduce taxes, and lower interest rates
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Tawanna
1 months ago
I'm torn between B and C, but I think B is the better option. Raising taxes during a recession just seems counterintuitive to me.
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Jean
1 months ago
But wouldn't raising public expenditure help stimulate the economy?
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Tammy
2 months ago
Definitely B. Increasing government spending and lowering taxes and interest rates is the way to stimulate the economy during a recession.
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Tresa
20 days ago
Lowering taxes and interest rates can also encourage consumer spending.
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Tresa
25 days ago
I agree, increasing government spending can help boost the economy.
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Francisca
2 months ago
I disagree, I believe the answer is A.
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Jean
2 months ago
I think the answer is B.
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