In relation to the Counter-cyclical Fiscal Policy Stance during a recession, the following statements can be made:
Statement I: During an expansionary fiscal policy, the government increases its expenditure and reduces taxes.
Statement II: The implementation of an expansionary fiscal policy assists the government in addressing a recession within an economy.
1
Neither 1 nor 2
2
2 only
3
Both 1 and 2
4
1 only