An Example of Automatic Fiscal Policy Is

question 4

Multiple Choice

An example of automatic fiscal policy is

• A)an interest rate cut,initiated by an act of Congress.
• B)an increase in the quantity of money.
• C)a tax cut,initiated by an act of Congress.
• D)a decrease in tax revenues,triggered by the state of the economy.
• E)any change in the interest rate,regardless of its cause.

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