All of the Following Are Examples of Automatic Stabilizers Except

question 169

Multiple Choice

All of the following are examples of automatic stabilizers except

• A) personal income taxes.
• B) means-tested federal transfer payments.
• C) welfare benefits.
• D) government emergency spending.

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Definitions:

Inflation Rates

The rate expressed in percentage at which the overall price level for goods and services increases, leading to a decline in purchasing power.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power currency over time.

Creditors

Creditors are individuals, businesses, or financial institutions that lend money or extend credit, expecting to be repaid with interest.

Fixed Incomes

Earnings that do not change over time, such as those from bonds or rents, which provide consistent income but may lose purchasing power over time.