Which of the Following Is an Example of an Automatic

question 56

Multiple Choice

Which of the following is an example of an automatic fiscal policy action?

• A)increased unemployment payments resulting from higher unemployment
• B)an increase in spending on defense goods resulting from increased world tensions
• C)an increase in the tax rate resulting from a desire to shrink the budget deficit
• D)a decrease in the tax rate resulting from an effort to increase aggregate demand to combat a recession
• E)None of the above answers are correct.

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Definitions:

Refuse

To express a deliberate intention not to accept, submit to, believe, or make use of something.

Mental Hospital

A healthcare institution specializing in the treatment of serious mental illnesses.

Involuntarily

Actions or reactions that occur without conscious control or decision, such as reflexes.

Commit

To carry out or perform an action deliberately, or to pledge oneself to a particular course or policy.