When the government decides to increase taxes to fight an inflationary gap, it is:
A) most likely to increase the budget deficit.
B) an example of discretionary fiscal policy.
C) an example of an automatic stabilizer.
D) likely to dampen the effects of inflation but not to lead to a correction.
Correct Answer:
Verified
Q361: Funding for Social Security and Medicare:
A)must come
Q362: During a recessionary gap:
A)holding everything else constant,
Q363: Social Security and Medicare:
A)are implicit liabilities.
B)are often
Q364: The government deficit:
A)is essentially the same as
Q365: Holding everything else constant, the government's budget
Q367: Holding everything else constant, the multiplier effect
Q368: Automatic stabilizers act like:
A)automatic expansionary fiscal policy
Q369: The public ratio of debt to GDP
Q370: The 2009 American Recovery and Reinvestment Act
Q371: Public debt is:
A)the total debt owed by
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