Which of the Following Is an Example of an Automatic

question 79

Multiple Choice

Which of the following is an example of an automatic stabilizer?

• A) Congress legislates lower tax rates to increase consumption and investment.
• B) Tax rates are increased during a recession to maintain a balanced budget.
• C) A regressive income tax system reduces tax revenues (as a share of income) as income expands.
• D) Revenues from the corporate income tax increase sharply during a business boom but decline substantially during a recession, even though no new tax legislation has been enacted.

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Definitions:

Child-rearing Studies

Research and analysis focused on the methods, practices, and cultural influences on the upbringing of children.

Culture-at-a-Distance Studies

Research methods involving the examination and analysis of cultural patterns and social dynamics of groups or societies without direct, in-person engagement.

Bugis

An ethnic group primarily found in the Indonesian island of Sulawesi, known for their maritime culture, skilled navigation, and elaborate social structures.

Multiple Genders

The recognition and acceptance of more than the traditional binary genders (male and female), encompassing a broader spectrum of gender identities.