Consider the following actions by the government: 1. Cutt

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M: +2.00/-0.50

Consider the following actions by the government:

1. Cutting the tax rates

2. Increasing the government spending

3. Abolishing the subsidies

In the context of economic recession,

which of the above actions can be considered a part of the ‘fiscal stimulus’ package?

I.A.S. (Pre) 2010

[Fiscal Policy, Inflation Planning and Banking]

1 and 2 only

2 only

1 and 3 only

1, 2 and 3

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