Which of the following is an example of an automatic fiscal policy action?
A) an increase in spending on defense goods resulting from increased world tensions
B) an increase in the tax rate resulting from a desire to shrink the budget deficit
C) a decrease in the tax rate resulting from an effort to increase aggregate demand to combat a recession
D) increased unemployment benefit payments resulting from higher unemployment
E) None of the above answers are correct.
Correct Answer:
Verified
Q43: A tax cut that increases the budget
Q44: The last U.S. president to be in
Q45: Q46: Ignoring any supply-side effects, when taxes are Q47: Which of the following is a limitation Q49: The balanced budget multiplier is Q50: Discretionary fiscal policy is defined as fiscal Q51: In a recession, needs-tested spending--------------------and induced taxes-------------------- Q52: When the government's expenditures exceed its tax Q53: The quantity of employment is determined in![]()
A)positive because the
A)increases;
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