Solved

The Canadian Tax and Transfer System Acts as an Automatic

Question 2

Multiple Choice

The Canadian tax and transfer system acts as an automatic stabilizer because


A) tax rates will automatically increase to stimulate the economy during economic recessions.
B) tax rates will automatically increase if the government is running deficits.
C) tax rates will automatically decrease to stimulate the economy during economic booms.
D) net tax revenues increase during economic booms and decrease during economic recessions.
E) net tax revenues decrease during economic booms and decrease during economic recessions.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents