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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:

Acut public expenditure, reduce taxes, and lower interest rates

Braise public expenditure, reduce taxes and lower interest rates

Craise public expenditure, raise taxes and lower interest rates

Dcut public expenditure, raise taxes and raise interest rates

Show Suggested Answer

Suggested Answer: C

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

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Leigha

3 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

6 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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Jeniffer

8 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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King

4 days ago

A) cut public expenditure, reduce taxes, and lower interest rates

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Tawanna

13 days 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

27 days ago

But wouldn't raising public expenditure help stimulate the economy?

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Tammy

28 days 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

3 days ago

Lowering taxes and interest rates can also encourage consumer spending.

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Tresa

8 days ago

I agree, increasing government spending can help boost the economy.

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Francisca

1 months ago

I disagree, I believe the answer is A.

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Jean

1 months ago

I think the answer is B.

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