The Major Advantage of Automatic Stabilizers Is That They

question 53

Multiple Choice

The major advantage of automatic stabilizers is that they

• A) guarantee the federal budget will be balanced in a relatively short amount of time.
• B) institute countercyclical fiscal policy without the delays associated with legislative action.
• C) automatically produce surpluses during recessions and deficits during expansions.
• D) require discretionary actions on the part of Congress before they exert an impact on output and employment.

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Definitions:

Mortgage Interest

The interest charged on a loan used to purchase a property, which is often tax-deductible for homeowners.

Vacation Home Properties

Real estate properties owned for personal use as a vacation getaway, which may also generate rental income.

Primarily Rental

Refers to property or real estate primarily used for rental purposes, where the primary intent is to generate rental income from tenants.

Personal Use

The use of a property or asset for individual needs or consumption, not for business or professional purposes.