36) An automatic fiscal stabiliser is A) a monetary or fiscal policy that aims to smooth out the business cycle. B) the tendency for inflation to fall as unemployment rises. C) a tax or form of government expenditure that has the effect of reducing the size of the multiplier. D) the tendency for exchange rates to adjust automatically to changes in the demand and supply of foreign currency
36) An automatic fiscal stabiliser is A) a monetary or fiscal policy that aims to smooth out the business cycle. B) the tendency for inflation to fall as unemployment rises. C) a tax or form of government expenditure that has the effect of reducing the size of the multiplier. D) the tendency for exchange rates to adjust automatically to changes in the demand and supply of foreign currency
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 1SQ
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Can you answer question 36, please?
36) An automatic fiscal stabiliser is
- A) a monetary or fiscal policy that aims to smooth out the business cycle.
- B) the tendency for inflation to fall as
unemployment rises. - C) a tax or form of government expenditure that has the effect of reducing the size of the multiplier.
- D) the tendency for exchange rates to adjust automatically to changes in the demand and supply of foreign currency
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