One Characteristic of Built-In or Automatic Stabilizers Is That

question 49

Multiple Choice

One characteristic of built-in or automatic stabilizers is that

• A)they require no new legislative action by Congress to have an effect.
• B)they automatically produce surpluses during recessions and deficits during inflation.
• C)they have no effect on the distribution of income.
• D)they reduce the size of the public debt during times of recession.

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Definitions:

Confidence Interval

A set of numbers resulting from the statistical examination of a sample, expected to encompass the value of an undetermined parameter of the overall population.

Critical Values

Specific points on the scale of a test statistic that delineate the boundary between rejecting and not rejecting the null hypothesis.

Independent Large Samples

This refers to samples that are drawn from populations in such a way that the selection of a unit in one sample does not influence the selection of units in other samples, and each sample contains a sufficiently large number of observations.

Population Standard Deviations

The square root of the population variance, indicating how data is dispersed around the mean.