Which of the Following Is a Possible Effect of Automatic

question 95

Multiple Choice

Which of the following is a possible effect of automatic stabilizers on the federal budget?

• A)A decrease in the deficit during recessions.
• B)An increase in the deficit when there is AD excess.
• C)An increase in the structural deficit during recessions.
• D)A decrease in the deficit during an expansion.

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Definitions:

Dramatically

This term indicates a significant, striking, or sudden change or effect.

Period

A length or portion of time in which events, processes, or conditions exist or take place.

Federal Income Tax Rates

A schedule of rates set by the government applied to the taxable income of individuals, corporations, and other entities.

Wealth Concentration

The scenario where a small percentage of people or entities hold a large portion of total wealth in a society.