An Example of Automatic Fiscal Policy Is When

question 140

Multiple Choice

An example of automatic fiscal policy is when

• A) tax revenues decrease as real GDP decreases.
• B) Congress passes a law that raises tax rates.
• C) Congress decides to cut government expenditure.
• D) the president drafts a bill to reduce defense spending.

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Definitions:

Channelization

The process of modifying the natural course of a waterway through engineering solutions to improve navigation, drainage, or flood control.

Migration And Spawning

The movement of fish or other aquatic animals to breeding grounds to reproduce.

Groundwater Moves

The natural process by which groundwater travels through soil and rock formations beneath the Earth's surface.

Fresh Water

Water that has low concentrations of dissolved salts (salinity) and other dissolved solids, making it suitable for drinking and supporting terrestrial life.