Which of the following is likely to dampen economic fluctuations in a country?
A) a regressive income tax
B) an increase in tax rates
C) a decrease in tax rates
D) an increase in money supply
E) unemployment insurance

Question

Quizplus · Accepted Answer

Unemployment insurance helps dampen economic fluctuations by providing a safety net for individuals who become unemployed during a recession. This helps to maintain consumer spending and overall demand in the economy, which can reduce the severity of a recession.

Which of the Following Is Likely to Dampen Economic Fluctuations