1. These measures include a reduction in spending. |
2. These measures include an increase in tax |
3. These measures include reduction in budget deficit. |
A) 1 only
B) 2 only
C) 3 only
D) 1, 2 and 3
Correct Answer: D
Solution :
Austerity describes policies used by governments to reduce budget deficits during adverse economic conditions. These policies may include spending cuts, tax increases. This is done in economic crisis situation to improve the credit rating of the countries going through adverse economic condition.You need to login to perform this action.
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