8. An increased federal budget deficit during an expansion serves as an automatic economic stabilizer for all of the following reasons except: reduced transfer payments from welfare programs partly offset the overall increase in household income. higher personal income translates into a higher tax load and so consumption spending is slightly curbed. higher corporate profits translate into higher tax load and so investment spending is slightly curbed. the positive government saving stimulates consumption spending.

8. An increased federal budget deficit during an expansion serves as an automatic economic stabilizer for all of the following reasons except: reduced transfer payments from welfare programs partly offset the overall increase in household income. higher personal income translates into a higher tax load and so consumption spending is slightly curbed. higher corporate profits translate into higher tax load and so investment spending is slightly curbed. the positive government saving stimulates consumption spending.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.1P

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Similar questions

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