Built-in stability means that:
A. an annually balanced budget will offset the procyclical tendencies created by state and
local finance and thereby stabilize the economy.
B. with given tax rates and expenditures policies, a rise in domestic income will reduce a
budget deficit or produce a budget surplus while a decline in income will result in a deficit
or a lower budget surplus.
C. Congress will automatically change the tax structure and expenditure programs to correct
upswings and downswings in business activity.
D. government expenditures and tax receipts automatically balance over the business cycle,
B. with given tax rates and expenditures policies, a rise in domestic income will reduce a
budget deficit or produce a budget surplus while a decline in income will result in a deficit
or a lower budget surplus
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"If there is an inefficient level of nursing care in South America, a deadweight loss exists." Is this statement true or false?
What will be an ideal response?
Refer to Figure 19-3. Which of the following is not true?
A) Thai exports to the United States are more expensive at exchange rates greater than $.03/baht than at the equilibrium exchange rate. B) The baht is overvalued at exchange rates greater than $.03/baht. C) To achieve an exchange rate greater than $.03/baht, the Bank of Thailand must buy surplus dollars with bahts. D) Thai imports from the United States are cheaper at exchange rates greater than $.03/baht than at the equilibrium exchange rate.