Which if the following is the most important automatic stabilizer?

Question

Quizplus · Accepted Answer

The tax system is the most important automatic stabilizer because it has an immediate impact on consumers' disposable income and can be quickly adjusted by the government. As incomes fall during a recession, taxpayers move into lower tax brackets, reducing the amount of tax paid, thus increasing disposable income. Conversely, during an economic boom, higher incomes cause taxpayers to move into a higher tax bracket, increasing tax revenue for the government and reducing disposable income. This stabilizes the economy by stimulating demand during a recession and reducing demand during an economic boom.

Which If the Following Is the Most Important Automatic Stabilizer