Automatic Fiscal Policy Is at Work If, as Real GDP

question 192

Multiple Choice

Automatic fiscal policy is at work if, as real GDP increases, _________.

• A) tax revenues increase and transfer payments decrease
• B) transfer payments decrease and interest rates decrease
• C) transfer payments increase and tax revenues decrease
• D) tax revenues decrease and interest rates increase

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Definitions:

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Second Variable

A variable declared or used after the first in a program or function, often for storing or manipulating additional data.

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A specific piece of data, typically a part of a larger data structure like a record or object, representing a characteristic or attribute.

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