Which of the Following Is an Important Automatic Fiscal Stabilizer

question 115

Multiple Choice

Which of the following is an important automatic fiscal stabilizer in the Canadian economy?

• A)the exchange rate
• B)the marginal propensity to consume
• C)the marginal propensity to import
• D)the income-tax system
• E)government purchases of goods and services

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Definitions:

Albert Bandura

was a Canadian-American psychologist known for his work on social learning theory and the concept of self-efficacy.

Barnum Effect

The tendency to accept vague and general personality descriptions as highly accurate for oneself.

External Locus

A psychological term indicating when individuals believe that external forces or events control their life outcomes, rather than their own efforts.

Self-Serving Bias

A common cognitive bias that causes individuals to attribute their successes to internal factors and failures to external factors.