The Presence of Automatic Stabilizers Increases the Size of the Multiplier

question 126

True/False

The presence of automatic stabilizers increases the size of the multiplier.

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Definitions:

Saving

The portion of income not spent on consumption, often set aside for future investments or expenditures.

Disposable Income

The amount of money individuals or households have available to spend or save after taxes have been accounted for.

Saving

The portion of income that is not spent on consumption but instead is set aside for future use or investment.

Disposable Income

Income left for households to direct into savings and spending after deductions of income taxes.