In Terms of Fiscal Policy, Which of the Following Is

question 97

Multiple Choice

In terms of fiscal policy, which of the following is an example of a fiscal automatic stabilizer?

• A)The reduction in the money supply that occurs as banks become less willing to make loans during a recession
• B)The reduction in wages that occurs as the economy goes into a recession
• C)The increase in government spending that occurs as the result of new spending bills passed by Congress
• D)The rise in tax revenue that occurs as a result of growth in real GDP

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Definitions:

Physical Exercise

Any bodily activity that enhances or maintains physical fitness and overall health and wellness, often performed for various reasons including strengthening muscles and the cardiovascular system.

Negative Emotions

Feelings that are generally considered to be unpleasant or harmful, such as sadness, anger, and fear.

Primary Control

Efforts to change the external world to fit one's needs or desires, often through direct action.

Secondary Control

A coping mechanism that involves adjusting one's own attitudes, goals, or emotions to deal with uncontrollable situations.