Income taxes are an automatic stabilizer because when income falls,ceteris paribus,tax receipts
A) Fall as taxpayers experience bracket creep.
B) Fall because income taxes are regressive.
C) Rise because automatic stabilizers work against the cyclical movements of the GDP.
D) Fall because taxes are computed on the basis of income.
Correct Answer:
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Q1: A tax cut can best be characterized
Q3: Policy tools to influence the macroeconomy include
A)Population
Q4: When the chairman of the Federal Reserve
Q5: Which of the following is not true
Q6: Assume the economy is in a recession
Q7: Monetarists believe that
A)Monetary policy is effective only
Q8: The structural deficit is
A)The deficit that would
Q9: Income taxes are an automatic stabilizer because
Q10: Which of the following is an example
Q11: Which of the following policy options would
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