Appropriate fiscal policy in deep recession:

Raising taxes during a deep recession would likely reduce disposable income for consumers and businesses, leading to decreased spending and further contraction of the economy. Higher taxes could also dampen investment and consumer confidence, thus exacerbating the recession rather than alleviating it.

Cutting government spending in a recession can lead to a reduction in overall demand in the economy. This contractionary measure would likely result in job losses and lower consumer spending, deepening the recession instead of providing relief to struggling sectors.

Increasing the reserve ratio requires banks to hold a higher percentage of deposits in reserve, which restricts their ability to lend. This policy would tighten the money supply, making it more difficult for businesses and consumers to access credit, thereby stifling economic growth during a time when increased liquidity is essential for recovery.