Which of the following is an example of an automatic stabilizer?
a. Decrease in tax rates by Congress in times of unemployment
b. Decrease in tax rates by Congress in times of inflation
c. Increase in government defense spending during war
d. Increase in unemployment compensation during recession
e. Decrease in welfare programs during inflation
d
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Borrowers are ________ of loanable funds, and lenders are ________ of loanable funds
A) suppliers; demanders B) demanders; suppliers C) demanders; demanders D) suppliers; suppliers
An increase in the marginal propensity to save from .1 to .2 will cause
A) an increase in the multiplier and a given change in autonomous consumption (c0 ) to have a smaller effect on output. B) an increase in the multiplier and a given change in autonomous consumption (c0 ) to have a larger effect on output. C) a reduction in the multiplier and a given change in autonomous consumption (c0 ) to have a smaller effect on output. D) a reduction in the multiplier and a given change in autonomous consumption (c0 ) to have a larger effect on output.