An Example of Automatic Fiscal Policy Is

question 30

Multiple Choice

An example of automatic fiscal policy is

• A) Parliament passing a tax rate reduction package.
• B) the Reserve Bank reducing interest rates as economic growth slows.
• C) the Commonwealth government expanding spending at the Department of Education and Training.
• D) expenditure for unemployment benefits increasing as economic growth slows.
• E) a change in taxes that has no multiplier effect.

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Definitions:

Return On Investment

A financial metric calculating the profitability or efficiency of an investment, expressed as a percentage of the investment's cost.

Operating Assets

Operating assets are assets required for a company to conduct its daily business operations, excluding any financial investments.

Return On Investment

A metric utilized to assess the effectiveness or return on investment (ROI) or to compare the performance of various investments.

Interest Expense

The cost incurred by an entity for borrowing funds, typically calculated as a percentage of the principal loan amount.