Multiple Choice
In terms of fiscal policy, which of the following is an example of a fiscal automatic stabilizer?
A) The reduction in the money supply that occurs as banks become less willing to make loans during a recession
B) The reduction in wages that occurs as the economy goes into a recession
C) The increase in government spending that occurs as the result of new spending bills passed by Congress
D) The rise in tax revenue that occurs as a result of growth in real GDP
Correct Answer:
Verified
Correct Answer:
Verified
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