What does an increase in the income tax rate illustrate? An increase in the income tax rate is an example of _______. A. increasing the government deficit B. discretionary fiscal policy C. automatic fiscal policy D. increasing the government debt

What does an increase in the income tax rate illustrate? An increase in the income tax rate is an example of _______. A. increasing the government deficit B. discretionary fiscal policy C. automatic fiscal policy D. increasing the government debt

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 30RQ: Under what general macroeconomic circumstances might a government use expansionary fiscal policy?...

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Question

What does an increase in the income tax rate illustrate?

An increase in the income tax rate is an example of _______.

increasing the government deficit

discretionary fiscal policy

automatic fiscal policy

increasing the government debt

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