Unemployment Insurance and the Proportional Nature of the Tax System

question 3

Multiple Choice

Unemployment insurance and the proportional nature of the tax system are examples of:

• A) discretionary fiscal policy.
• B) automatic fiscal policy.
• C) both discretionary and automatic fiscal policy.
• D) expansionary fiscal policy.

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Definitions:

Risk-loving

A preference for or an inclination towards taking high risks in pursuit of high rewards, often in the context of investment or economic decisions.

Risk-loving

A preference for options with uncertain outcomes, rather than those with more predictable results, often with the hope of higher rewards.

Marginal Utility

The supplementary enjoyment or value obtained by consuming another unit of a good or service.

Disability Insurance

A type of insurance that provides financial support to individuals who cannot work due to a disability.