The progressive income tax is an automatic stabilizer with respect to the Federal government's budget surplus or deficit because
A) individuals must "automatically" pay taxes even when they have a deficit.
B) during periods of output growth, a greater percentage of real income "leaks" from the expenditure stream.
C) during periods of output growth, the marginal leakage rate increases as taxes decrease.
D) None of the above.
B
Economics
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When the economy is on the steeper part of the short run aggregate supply curve, efforts to bring inflation down with monetary policy will be ____ successful and efforts to stimulate the economy will be ____ successful
a. More; more b. More; less c. Less; more d. Less; less
Economics
Keynes believed that saving is more responsive to changes in income than to changes in interest rates
Indicate whether the statement is true or false
Economics