Solved

An Automatic Stabilizer

Question 120

Multiple Choice

An automatic stabilizer


A) keeps taxes and government spending in a constant ratio to each other throughout the business cycle
B) increases taxes relative to government spending during contractions and decreases it in expansions
C) decreases taxes relative to government spending during contractions and increases it in expansions
D) increases taxes relative to government spending throughout the business cycle
E) decreases taxes relative to government spending throughout the business cycle

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents