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Margot Is Complaining About How Much She Pays in Taxes

Question 69

Multiple Choice

Margot is complaining about how much she pays in taxes now that the economy is finally doing well. Even though she's in the same tax bracket as she was last year, she got a raise and is paying $500 more in taxes this year. Margot's increased tax payment to the government is an example of:


A) expansionary fiscal policy.
B) contractionary fiscal policy.
C) discretionary fiscal policy.
D) an automatic stabilizer.

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