Multiple Choice
If taxes became more progressive, we would expect that whenever there was an economic fluctuation
A) there would be no difference in how automatic changes in taxes affected spending.
B) automatic changes in taxes would become less stabilizing.
C) discretionary fiscal policy would become more effective.
D) automatic changes in taxes would become more stabilizing.
E) discretionary fiscal policy would become less effective.
Correct Answer:

Verified
Correct Answer:
Verified
Q6: Supporters of policy rules argue that automatic
Q7: To determine the size of the automatic
Q8: Most state and local government expenditures are
Q9: Policy rules tend to make the budget
Q10: The third substantial piece of fiscal policy
Q12: President Barack Obama signed into law the
Q13: Less than 20 percent of the U.S.
Q14: What are the major categories of taxes
Q15: Suppose, for a hypothetical country in 2017,
Q16: Changes in government purchases always lead to