Features of the U.S. federal government expenditure and taxation programs that tend to automatically slow the economy during times of high economic activity and boost the economy during periods of recession are called:
A) discretionary expenditures.
B) automatic stabilizers.
C) non-automatic stabilizers.
D) none of the above.
B
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A country producing a combination of 9 units of guns and 6 units of butter would be _____________ (outside/on/inside) the production possibilities curve.
The marginal cost curve crosses the average total cost curve at the
a. highest level of average total cost. b. lowest level of average total cost. c. point where the ATC equals the AVC. d. point where the ATC equals the AFC.
Giving poor people food instead of cash for food
A. is an in-kind transfer. B. will benefit some more than others, depending on their utility function. C. is politically popular. D. all of these answer options are correct.
If the inflation rate is rising, which one of the following would the Fed need to do to reduce the inflation rate?
A. Reduce reserve requirements B. Reduce margin requirements C. Encourage more discount borrowing D. Increase the federal funds rate