Which of the Following Is an Example of an Automatic

question 157

Multiple Choice

Which of the following is an example of an automatic stabilizer?

• A)tax reductions passed by Congress in times of unemployment
• B)tax reductions passed by Congress in times of inflation
• C)government defense spending
• D)unemployment compensation
• E)welfare programs

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Definitions:

Foreign Exchange

The conversion of one currency into another for the purpose of trade, travel, or investment in the global market.

Safety Valve

A mechanism, either physical or metaphorical, designed to prevent system overload by releasing excess pressure or providing an alternative route in times of crisis.

Nurses

Medical professionals primarily responsible for patient care, including administering treatments and medications, and providing support and advice to patients.

Developing Countries

Nations with a lower living standard, underdeveloped industrial base, and a low Human Development Index (HDI) relative to other countries.