Built-in stability means that:
A) an annually balanced budget will automatically offset the pro-cyclical tendencies created by state and local finance and thereby stabilizes the economy.
B) with given tax rates and expenditures policies a rise in domestic income will reduce a budget deficit or produce a budget surplus while a decline will result in a deficit or a lower budget surplus.
C) Parliament will automatically change the tax structure and expenditure programs to correct upswings and downswings in business activity.
D) government expenditures and tax receipts automatically balance over the business cycle, though they may be out of balance in any single year.
Correct Answer:
Verified
Q85: Due to automatic stabilizers, when income decreases,
Q86: Which is regarded as an automatic stabilizer
Q87: Built-in stabilizers:
A)intensify the business cycle.
B)reduce the size
Q88: With a regressive tax system, as the
Q89: When government tax revenues change automatically and
Q91: Which of the following statements is correct?
A)Built-in
Q93: Refer to the diagram below wherein T
Q94: In a certain year the aggregate amount
Q95: The effectiveness of the built-in or automatic
Q157: The more progressive the tax system, the
A)less
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