Determine whether the following represent an example of discretionary fiscal policy or an automatic stabilizer, or neither: A. As the recession and unemployment worsen in Singsville, the average tax rate paid by households falls B. The goverment of Singsville reduces spending on the military to slow down economic activity C. The central bank of Singsville cuts bank fees 1. Discretionary fiscal policy 22. Automatic stabilizer 3. Neither

Determine whether the following represent an example of discretionary fiscal policy or an automatic stabilizer, or neither: A. As the recession and unemployment worsen in Singsville, the average tax rate paid by households falls B. The goverment of Singsville reduces spending on the military to slow down economic activity C. The central bank of Singsville cuts bank fees 1. Discretionary fiscal policy 22. Automatic stabilizer 3. Neither

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 5P

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