Austerity measures taken in an economy can 1 Increase government expenditure 2 Increase tax rates 3 ...........

Economic Affairs Tax System

Austerity measures taken in an economy can:

1. Increase government expenditure.

2. Increase tax rates.

3. Increase disinvestment income.

4. Increase the level of Effective Demand.

Which of the statements given above is/are correct?

2 and 3 only

1 and 4 only

1, 2 and 3 only

2, 3 and 4 only

1st and 4th are incorrect i.e. Increase government expenditure and Increase the level of Effective Demand.

Submit Error