Automatic stabilizersA) are a form of nondiscretionary fiscal policy.B) include income taxes and cash assistance to the poor.C) include in-kind assistance.D) All of the choices are true of automatic stabilizers.

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House of Guffanti · Accepted Answer

Final Answer : D, Explanation :  All of the choices are true of automatic stabilizers. Automatic stabilizers are built into the economy and automatically activate during economic downturns or recessions, without any deliberate government action. These automatic stabilizers include income taxes, which tend to decrease during a recession as people earn less income, and various forms of government transfers such as unemployment benefits, which increase during a recession as more people become unemployed. In-kind assistance such as food stamps and housing vouchers are also examples of automatic stabilizers. Therefore, all of the choices in the question are true of automatic stabilizers.

Automatic stabilizers

A) are a form of nondiscretionary fiscal policy.
B) include income taxes and cash assistance to the poor.
C) include in-kind assistance.
D) All of the choices are true of automatic stabilizers.

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