QUESTI 10 points Save Answer Much of each year\'s deficit is It must be spent fo

Question

QUESTI 10 points Save Answer Much of each year's deficit is It must be spent for purchasing goods and O It is primarily the result of the relative strength or weakness of the economy. spending so large that it is literally O It is determined by private out of control. QUESTI 10 points Save Answer The government is pursuing a stimulus policy if, regardless of the budget balance (surplus or deficit), it: Increases its spending and increases taxes. O Reduces its spending and Increases its spending OReduces its spending and reduces taxes. and reduces taxes. increases taxes. QUESTI 10 points Save Answer Which of the following is NOT an automatic stabilizer? Income taxes. O Unemployment benefits Welfare payments National security spending

Explanation / Answer

1) Government has to spend money on the purchases of goods and services. Thus it said to be uncontrollable.

2) Fiscal stimulus entails increase in government consumption or spending with decrease in taxes to encourage consumer spending.

3) The national security spending is not the automatic stabilizer since it has to be carried on irrespective of the economic condition

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