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:

Legal Procedures

The official processes and methods used within the judicial system to ensure the legal rights of individuals are upheld.

Principal Debtor

The primary individual or entity responsible for repaying a debt or obligation in a lending agreement.

Certificate of Title

A legal document that provides proof of ownership of a piece of property, such as land or a vehicle.

Perfection

The legal process of securing a claim or interest in a borrower's collateral, making it enforceable against third parties.