Transfer Payments (Such as Welfare Payments and Employment-Insurance Benefits)act as Automatic
Transfer payments (such as welfare payments and employment-insurance benefits) act as automatic stabilizers because they
A) decrease the swings of the business cycle.
B) increase the swings of the business cycle.
C) increase the swings of the business cycle and make an annually balanced budget much harder to achieve.
D) increase the government surplus during the expansionary phase of the business cycle.
E) increase the debt-to-GDP ratio during the expansionary phase of the business cycle.
Correct Answer:
Verified
Q115: The Canadian tax and transfer system acts
Q116: The policy objective of an annually balanced
Q117: Most economists believe that balancing the government
Q118: Until the onset of the most recent
Q119: Suppose legislation required the government's budget to
Q120: Decreasing government expenditures in order to reduce
Q121: Suppose legislation in Canada required annually balanced
Q122: Suppose the government implemented cyclically balanced government
Q123: Suppose the government decided to ensure that
Q124: The 2008-2009 global recession had an effect
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents