Which of the Following Is an Example of an Automatic

question 34

Multiple Choice

Which of the following is an example of an automatic stabilizer during a recession?

• A) A decrease in tax revenue due to an increase in unemployment
• B) A decrease in inflation due to an increase in consumption
• C) An increase in interest rates due to a decrease in investment
• D) An increase in money supply due to a decrease in bank deposits

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Definitions:

Correct Rejection

In signal detection theory, the decision to correctly identify the absence of a signal or stimulus.

Miss

To fail to hit, reach, catch, or otherwise make contact with something; can also refer to feeling sadness from the absence or loss of someone or something.

False Alarm

An error in which a warning or alert is given, but no actual threat or danger exists.

Noise Hit

In signal detection theory, an instance where a non-target stimulus is incorrectly detected as a target signal.