Generally Speaking, Automatic Fiscal Stabilizers

question 9

Multiple Choice

Generally speaking, automatic fiscal stabilizers

• A)raise the level of consumption during recessions, which offsets any decrease in investment
• B)dampen the decrease in disposable income during recessions, so disposable income as a fraction of total income actually rises
• C)increase the size of the fiscal policy multiplier
• D)cannot be relied on if a disturbance is transitory
• E)work mainly through reduction in the outside lag

---

Definitions:

Polygenic

A term describing a trait or characteristic that is influenced by more than one gene, often resulting in a continuous range of possible phenotypes.

Codominant

A genetic scenario where two different alleles of a gene are both fully expressed in a heterozygous individual, leading to a phenotype that is a mixture or combination of both alleles.

Recessive

A genetic term referring to traits that are expressed only when two copies of a gene, one from each parent, are present.

Dominant

Refers to a trait, allele, or characteristic that overpowers or is more likely to be expressed than another in genetic inheritance.