Due to automatic stabilizers, when income rises, government transfer spending:
A. and tax revenues increase.
B. increases and tax revenues decrease.
C. and tax revenues decrease.
D. decreases and tax revenues increase.
Answer: D
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Explain the principal-agent problem as it pertains to equity contracts
What will be an ideal response?
A decline in the output gap causes the demand for real balances
A) to rise and the interest rate to fall. B) to fall and the interest rate to rise. C) and the interest rate to fall. D) and the interest rate to rise.
A conglomerate merger is a combination of
a. firms that formerly competed with each other. b. firms that formerly bought from and sold to each other. c. firms that produce nearly identical products, but are based in different countries. d. firms that produce unrelated products or services.
Virtual currency unit 3 (VCU3) is different from VCU2 because:
a. VCU2 cannot be spent in the real world; VCU3 can be spent in the real world. b. In terms of convertibility, there is no difference; both VCU2 and VCU3 can be purchased with and sold for legal tender. c. VCU3 can directly affect real world demand, whereas VCU2 cannot affect real-world demand. d. In terms of spending potential, there is no difference because neither VCU2 nor VCU3 can be spent in the real world.