Income Taxes in Canada Can Be Considered to Be Automatic

Multiple Choice

Income taxes in Canada can be considered to be automatic stabilizers because tax

A) revenues increase when income increases,thereby offsetting some of the increase in aggregate demand.
B) revenues decrease when income increases,thereby intensifying the increase in aggregate demand.
C) structures can be changed when the Minister of Finance brings down a budget.
D) revenues are changed through discretionary fiscal policy to keep the budget balanced.
E) revenues are changed through discretionary fiscal policy to create surpluses in recessions.