Multiple Choice
Which of the following is true about automatic stabilizers?
A) Automatic stabilizers are a part of discretionary fiscal policy.
B) The federal funds rate is an example of an automatic stabilizer.
C) An automatic stabilizer is any program that responds to fluctuations in the business cycle in a way that moderates the effects of those fluctuations.
D) Any kind of trade policy adopted by the government will be considered as an automatic stabilizer.
E) When income rises, automatic stabilizers increase/boost spending.
Correct Answer:
Verified
Correct Answer:
Verified
Q67: In the late 1990s, debt-financed government spending
Q68: Assume that French budget deficits have raised
Q69: Automatic stabilizers act to moderate business cycles
Q70: Which of the following is true of
Q71: Governments in developing countries typically play a
Q73: If consumers spend _ of a change
Q74: Which of the following does not qualify
Q75: The U.S.government deficit as a percentage of
Q76: If the private sector anticipates higher future
Q77: The figure given below depicts the macroeconomic