Which of the Following Is an Example of Automatic Fiscal

question 132

Multiple Choice

Which of the following is an example of automatic fiscal policy?

• A) The government deliberately raises taxes.
• B) The government deliberately lowers taxes.
• C) The government deliberately increases spending.
• D) The government deliberately decreases spending.
• E) none of the above

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Definitions:

Governor Pressure

The hydraulic pressure in automatic transmissions that helps control gear shifts and is regulated by the vehicle's governor.

Transmission

A system in vehicles that transmits power from the engine to the drive axle, enabling the change of gears and varying the power and speed ratio.

Output Shaft Speed

The rotational speed of the shaft that delivers power from a transmission or differential to the wheels or other driven components.

Allison Transmission

A brand known for manufacturing automatic transmissions for heavy-duty and commercial vehicles.