Which Statement(s) Is/are TRUE? I

question 130

Multiple Choice

Which statement(s) is/are TRUE? I. Automatic stabilizers require overt action by Congress or other policymakers to implement.
II) Discretionary increases in government spending are classified as automatic stabilizers.
III) When the economy is growing, tax receipts increase and transfer payments decrease, helping to automatically stabilize the economy by preventing it from growing too fast.

• A) I only
• B) II only
• C) III only
• D) I, II, and III

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Definitions:

Positive Slope

A line or curve on a graph that moves upward from left to right, indicating a positive relationship between two variables.

Increasing

A process or trend characterized by a growth or rise in quantity, size, or significance.

Panels

Groups of selected individuals or experts brought together to discuss, investigate, or make decisions about specific subjects.

Infinite Slope

A mathematical concept indicating a line that is vertical, representing an undefined or infinite rate of change.