An example of automatic fiscal policy is
A) a tax cut, initiated by an act of Congress.
B) a decrease in tax revenues, triggered by the state of the economy.
C) any change in the interest rate, regardless of its cause.
D) an increase in the quantity of money.
E) an interest rate cut, initiated by an act of Congress.
Correct Answer:
Verified
Q115: Automatic stabilizers
A)have no effect on the magnitude
Q116: An economic expansion leads to--------------------needs-tested spending and--------------------
Q117: In 2010, the U.S. government had tax
Q118: The national debt is
A)the excess of this
Q119: Ignoring any supply-side effects, to close a
Q121: An example of automatic fiscal policy is
A)expenditure
Q122: The supply-side effects show that a tax
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