Income Taxes in Canada Can Be Considered to Be Automatic

question 32

Multiple Choice

Income taxes in Canada can be considered to be automatic stabilizers because tax

• A)revenues increase when income increases,thereby offsetting some of the increase in aggregate demand.
• B)revenues decrease when income increases,thereby intensifying the increase in aggregate demand.
• C)structures can be changed when the Minister of Finance brings down a budget.
• D)revenues are changed through discretionary fiscal policy to keep the budget balanced.
• E)revenues are changed through discretionary fiscal policy to create surpluses in recessions.

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Definitions:

Oxygen

A chemical element with symbol O and atomic number 8, essential for aerobic respiration in most living organisms.

Soil-Testing Laboratory

A specialized facility that analyzes soil samples to determine nutrient content, composition, and other characteristics important for agriculture and environmental science.

Inorganic Mineral Particles

Solid, naturally occurring substances that are not derived from living organisms, commonly found in soils and rocks, essential for various environmental and biological processes.

Organic Material

Matter that comes from living organisms or is composed of compounds originally synthesized by living organisms, often rich in carbon.