An increased federal budget surplus during an expansion serves as an automatic economic stabilizer for all of the following reasons except:
A) higher personal income translates into a higher tax load and so consumption spending is slightly curbed.
B) higher corporate profits translate into a higher tax load and so investment spending is slightly curbed.
C) the positive government saving stimulates consumption spending.
D) reduced transfer payments from welfare programs partly offset the overall increase in household income.
Correct Answer:
Verified
Q18: In 2009, federal spending was about:
A) $2.7
Q19: Which of the following is included in
Q20: The largest source of federal revenue is:
A)
Q21: Which of the following is an example
Q22: Net interest spending consists of:
A) interest payments
Q24: The key lesson to remember about budget
Q25: Recall Application 1, "Increasing Life Expectancy and
Q26: All of the following are examples of
Q27: The lags associated with fiscal policy can:
A)
Q28: Although government spending increased during the 1930s,
A)
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