Automatic Fiscal Policy

question 59

Multiple Choice

Automatic fiscal policy

• A)requires action by Parliament.
• B)is triggered by the state of the economy.
• C)involves only a change in government outlays and no change in revenues.
• D)involves only a change in personal income tax rates.
• E)occurs during recessions but not during expansions.

---

Definitions:

Treasury Bills

Short-term government securities with maturity periods typically of one year or less, considered a low-risk investment.

Least Risky

Describes an investment or action that is considered to have the lowest probability of causing financial loss or harm.

Canadian Common Stocks

Equity in publicly listed Canadian corporations, indicative of part ownership in these enterprises.

Risk Premium

The extra yield an investor anticipates earning for accepting greater risk relative to a risk-free investment.