18. An increased federal budget deficit during an expansion serves as an automatic economic stabilizer for all of the following reasons except: reduced transfer payments from welfare programs partly offset the overall increase in household income.higher personal income translates into a higher tax load and so consumption spending is slightly curbed.higher corporate profits translate into higher tax load and so investment spending is slightly curbed.the positive government saving stimulates consumption spending.

The situation when the expenses tend to exceed revenue which tends to indicate the economy's…

Answered: 8. An increased federal budget…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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18.

An increased federal budget deficit during an expansion serves as an automatic

economic stabilizer for all of the following reasons except:

reduced transfer payments from welfare programs partly offset the overall increase in household income.
higher personal income translates into a higher tax load and so consumption spending is slightly curbed.
higher corporate profits translate into higher tax load and so investment spending is slightly curbed.
the positive government saving stimulates consumption spending.

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