An Example of Automatic Fiscal Policy Is

question 2

Multiple Choice

An example of automatic fiscal policy is

• A)a tax cut, initiated by an act of Congress.
• B)a decrease in tax revenues, triggered by the state of the economy.
• C)any change in the interest rate, regardless of its cause.
• D)an increase in the quantity of money.
• E)an interest rate cut, initiated by an act of Congress.

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