An example of automatic fiscal policy is A. a change in taxes that has no multiplier effect. B. the Federal Reserve reducing interest rates as economic growth slows. C. expenditure for unemployment compensation increasing as economic growth slows. D. the federal government expanding spending at the Department of Education. E. Congress passing a tax rate reduction package.
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Step 1: An example of automatic fiscal policy is a change in government spending or taxes that occurs automatically without the need for new legislation. Show more…
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