Which of the Following Is an Example of an Automatic

question 72

Multiple Choice

Which of the following is an example of an automatic stabilizer?

• A)Fed discount rate.
• B)Discretionary fiscal policy that must be determined by Congress and the president.
• C)Changes that are triggered by the economy and not by government decision makers.
• D)Supply-side policies that Congress designs to stimulate the economy.

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Definitions:

Usury Law

Legislation regulating the maximum interest rate that can be charged on a loan, to protect consumers from excessively high rates.

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that an employer can legally pay its workers.

Gas Lines

Queues of vehicles waiting to fuel up, sometimes seen during periods of fuel shortages.

Price Ceilings

Government-imposed limits on how high a price can be charged for a product, service, or commodity, usually intended to protect consumers.