An Example of an Automatic Stabilizer Is

question 145

Multiple Choice

An example of an automatic stabilizer is

• A)unemployment benefits.
• B)a lowering of interest rates by the Fed.
• C)a decrease in money demand.
• D)a decrease in tax rates in response to a recession.

---

Definitions:

Evolutionary Psychology

A branch of psychology that studies how evolutionary principles help explain the structure and function of the human mind.

Cerebral Cortex

The outer layer of the brain that is responsible for complex cognitive processes, including thought, memory, awareness, and consciousness.

Biological Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Low Base Rate Fallacy

The tendency to ignore the base rate (i.e., the prevalence of an event or characteristic within a given population) when making judgments of probabilities, leading to inaccurate assessments.