Briefly explain whether each of the following is (1) a discretionary fiscal policy, (2) an automatic stabilizer,
Question:
a. Government spending on rebuilding highways
b. Sales and purchases of government securities on the open market
c. Unemployment insurance
d. Proportional income taxes
e. Changes in the federal funds rate
f. A 5% increase in all income tax rates.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
Question Posted: