If the economy falls into a recession, automatic stabilizers will cause:
A. tax receipts to fall and government spending to rise.
B. both tax receipts and government spending to fall.
C. tax receipts to rise and government spending to fall.
D. both tax receipts and government spending to rise.
Answer: A
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A perfectly competitive firm is producing at the point where its marginal cost equals its marginal revenue. If the firm boosts its output, its total revenue will
A) rise and its total variable cost will rise even more. B) rise and its total variable cost will rise, but not by as much. C) fall but its total variable cost will rise. D) fall and its total variable cost will fall, but not by as much.
Mention some of the ways in which the problem of asymmetric information can be reduced
A country recently had 500 billion euros of national saving and 200 billion euros of domestic investment. What was its net capital outflow? What was its quantity of loanable funds demanded?
Which of the following would provide an incentive to increase the amount of beef consumed?
A. a tax on beef sales B. a decrease in the price of beef C. a ban on beef sales by the Food and Drug Administration D. promotion of chicken consumption