A fall in income that results in a decrease in tax revenues is an example of ________.
A) automatic fiscal policy
B) needs-tested tax programs
C) a recession
D) discretionary fiscal policy

Question

Quizplus · Accepted Answer

A fall in income that leads to a decrease in tax revenues is an example of automatic fiscal policy, as the government's tax revenue will automatically decrease without any deliberate policy decision.

A Fall in Income That Results in a Decrease in Tax