Multiple Choice
Which of the following statements is not true with regard to automatic stabilizers?
A) The most important automatic stabilizer is the tax system.
B) They act as shock absorbers to the economy.
C) They require legislative action.
D) Automatic stabilizers like government transfer payments change as business cycles conditions change.
Correct Answer:
Verified
Correct Answer:
Verified
Q101: If MPC = 0.8, a $200 billion
Q102: The larger the marginal propensity to consume,
Q103: A larger crowding-out effect:<br>A)increases the magnitude of
Q104: According to the supply-side view of fiscal
Q105: A $100 billion increase in government purchases
Q107: Which of the following propositions would a
Q108: Automatic stabilizers lead to:<br>A)a decrease in taxes
Q109: Supply-side advocates believe that when taxes and
Q110: The greater the MPC:<br>A)the greater the fraction
Q111: Economists agree that the multiplier effect on