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.

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Definitions:

Impact

The effect or influence of one thing on another, often used to describe the outcome of a particular action or series of events.

Reflect

To reflect is to think deeply or carefully about something, often involving careful consideration or meditation on past experiences or ideas.

Reputation

The beliefs or opinions that are generally held about someone or something, often based on past actions or performances.

Cross-Situational Consistency

The concept that an individual's behavior tends to be consistent across different situations and contexts.