Taxes in the United States are automatic stabilizers in that
A) tax revenues increase when income increases,thus offsetting some of the increase in aggregate demand.
B) tax revenues decrease when income increases,intensifying the increase in aggregate demand.
C) the President can increase tax rates whenever he deems such policy appropriate.
D) tax rates can be adjusted by Congress to counteract economic fluctuations.
Correct Answer:
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Q121: If the multiplier is 2,the MPC is
A).1.
B).2.
C).5.
D).8.
E)1.0.
Q122: Suppose that we reduce the federal budget
Q123: An increase in taxes of a given
Q124: If the federal budget deficit is falling,the
Q125: If the government's budget is balanced at
Q127: If the national debt is rising,the federal
Q128: If the multiplier is 5,the MPC is
A).1.
B).2.
C).5.
D).8.
E)1.0.
Q129: If we are running a federal budget
Q130: The use of government spending and taxation
Q131: To finance a government deficit,
A)money is borrowed.
B)the
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