Due to Automatic Stabilizers, When the Nation's Total Income Rises

question 10

Multiple Choice

Due to automatic stabilizers, when the nation's total income rises, government transfer spending:

• A) Increases and tax revenues decrease
• B) Decreases and tax revenues increase
• C) And tax revenues decrease
• D) And tax revenues increase

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Definitions:

Complement

In mathematics, a complement refers to the elements not in the subset of interest within a given set. In general language, it means something that completes or goes well with something.

P(A And B)

The probability that events A and B both occur.

P(A Or B)

The probability that at least one of two events, A or B, will occur.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.