If Government Tax Revenues Change Automatically and in a Countercyclical

question 160

Multiple Choice

If government tax revenues change automatically and in a countercyclical direction over the course of the business cycle, this would be called a(n) :

• A)discretionary fiscal policy.
• B)expansionary fiscal policy.
• C)political business cycle.
• D)nondiscretionary fiscal policy.

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Definitions:

Familiar Situations

Contexts or environments that individuals recognize and have prior knowledge or experience with.

Arranged Marriages

Marriages where the spouses are selected by a third party rather than by each other, commonly practiced in certain cultures and communities.

First Cousin

The child of one's aunt or uncle, sharing a set of grandparents.

China And India

Refers to the two most populous countries in the world, known for their significant cultural, economic, and geopolitical influence.