Personal and corporate income taxes are automatic stabilizers because
a. they generate approximately the same revenues during prosperity and recession
b. tax rates decrease more during prosperity than during recession
c. tax rates increase more during prosperity than during recession
d. they take more income out of the economy during prosperity than during recession
e. they take less income out of the economy during prosperity than during recession
D
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The table above shows data reported by the Office for National Statistics for the United Kingdom in September 2000. In September 2000, the labor force participation rate is
A) 34.8 percent. B) 40.3 percent. C) 63.1 percent. D) 58.3 percent. E) 59.7 percent.
Which of the following policy tools did the Fed create in 2008 to address the financial crisis?
i) quantitative easing ii) credit easing iii) open market operations A) ii only B) i and ii C) i and iii D) i only E) ii and iii
________ is the market structure in which there are a few rival firms
A) Perfect competition B) Monopolistic competition C) Monopoly D) Oligopoly
The marginal propensity to consume is 0.50, marginal propensity to invest is 0.20, and the marginal propensity to import is 0.05. What is the size of the multiplier?
A) 1.00 B) 2.86 C) 3.00 D) 0.50