The so-called negative taxes are better known as
A) government spending.
B) transfer payments.
C) built-in stabilizers.
D) ﬁscal multipliers.

Question

Quizplus · Accepted Answer

Negative taxes refer to transfer payments from the government to individuals or households whose incomes fall below a certain level. Therefore, choice B, transfer payments, is the correct answer. Government spending refers to the use of government funds to pay for goods and services, built-in stabilizers refer to automatic mechanisms that help stabilize the economy, and fiscal multipliers refer to the multiplier effect of government spending on the economy.

The So-Called Negative Taxes Are Better Known as