Which of the Following Is an Example of an Automatic

question 194

Multiple Choice

Which of the following is an example of an automatic fiscal policy action?

• A)increased unemployment payments resulting from higher unemployment
• B)an increase in spending on defense goods resulting from increased world tensions
• C)an increase in the tax rate resulting from a desire to shrink the budget deficit
• D)a decrease in the tax rate resulting from an effort to increase aggregate demand to combat a recession
• E)None of the above answers is correct.

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Definitions:

Host-Country Nationals

Employees who are citizens of the country in which a multinational company's foreign subsidiary is located, unlike expatriate employees from the company's home country.

Exporting

The process of selling goods or services produced in one country to buyers in other countries, often as a strategy for companies to expand their market reach.

International Business Strategy

A plan of action that guides commercial transactions taking place between entities in different countries.

Transportation Costs

Expenses incurred during the transfer of goods or services from one location to another, including shipment, fuel, and labor costs.