A fall in income that results in a decrease in tax revenues is an example of .

Name: A fall in income that results in a decrease in tax revenues is an example of .
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Question

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A fall in income would lead to a decrease in tax revenues due to progressive taxation, which automatically adjusts tax revenues in response to changes in the economy without the need for government intervention. This is an example of automatic fiscal policy. The other options are not relevant to the scenario described.

A Fall in Income That Results in a Decrease in Tax