Automatic stabilizers are the:
A. taxes and government spending that affect fiscal policy without specific action from policymakers.
B. fiscal policies that government actively chooses to adopt.
C. expansionary fiscal policies.
D. Keynesian policies.
A. taxes and government spending that affect fiscal policy without specific action from policymakers.
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What effect will an increased demand for housing in the suburbs of a major city have on the cost of vegetable farming in the suburbs?
A) No effect, since one cannot grow vegetables on land on which housing has been constructed. B) The cost will decline because only very fertile land will now be used for growing vegetables. C) The cost will rise because it will become more expensive to grow vegetables. D) The cost won't change, because there has been no change in physical conditions. E) We cannot predict unless we know what has happened to the demand for vegetables.
Identify each of the following as (i) part of an expansionary fiscal policy, (ii) part of a contractionary fiscal policy, or (iii) not part of fiscal policy
a. The personal income tax rate is lowered. b. Congress cuts spending on defense. c. College students are allowed to deduct tuition costs from their federal income taxes. d. The corporate income tax rate is lowered. e. The state of Nevada builds a new tollway in an attempt to expand employment and ease traffic in Las Vegas.
Crazy Cryptography is a software corporation that has 1,000 shares of stock in existence. The corporation has just surprised the market by announcing a new software package that will increase the company's after-tax profit by $500,000 each year, forever. If the interest rate is 8 percent (0.08) per year, by how much will the value of a single share of stock increase?
a. $500.00 b. $6,250.00 c. $5,000.00 d. $10,000.000 e. $8,333.33
Average fixed costs will
A. fall then rise as output rises. B. rise as output rises. C. rise then fall as output rises. D. fall as output rises.