Macroeconomics 9th Edition by David Colander

Exercise 33

In this chapter you learned the importance of automatic stabilizers.t the state level, "rainy day" funds play a crucial role in maintaining services when state revenues decrease during a recession.hile this may appear to be a rational institution, institutions are social constructs and what appears rational depends upon individual belief systems.he existence of a rainy-day fund can be interpreted as definitive proof of excess taxation and, in states that allow voter referendums, this fund can be eliminated by a majority vote.hat vested interests- those seeking something for nothing-benefit from such decisions (Institutionalist)