During a contraction,
A) higher income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus.
B) higher income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.
C) lower income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus.
D) lower income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.
Correct Answer:
Verified
Q39: The use of government expenditures and taxes
Q40: Personal income taxes and transfer payments
A) acts
Q41: Discretionary fiscal policy refers to
A) deliberate government
Q42: Changes in expenditures and taxes that occur
Q43: Contractionary fiscal policy includes
A) increasing taxes and
Q45: An expansionary fiscal policy
I. includes an increase
Q46: In general, personal income taxes
A) rise automatically
Q47: Automatic stabilizers are considered
A) discretionary fiscal policies.
B)
Q48: Which of the following describes a discretionary
Q49: During a recession, unemployment insurance ensures that
A)
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