As the economy declines into recession, the collection of personal income tax revenues automatically falls. This relationship best describes how the progressive income tax system: A. serves as a discretionary fiscal policy B. have no effect in the economy C. will help discourage spending D. converts a recession into a depression E. serves as an automatic stabilizer for the economy
As the economy declines into recession, the collection of personal income tax revenues automatically falls. This relationship best describes how the progressive income tax system: A. serves as a discretionary fiscal policy B. have no effect in the economy C. will help discourage spending D. converts a recession into a depression E. serves as an automatic stabilizer for the economy
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 2.9P
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please answer the following question:
1. As the economy declines into recession, the collection of personal income tax revenues
automatically falls. This relationship best describes how the progressive income tax system:
A. serves as a discretionary fiscal policy
B. have no effect in the economy
C. will help discourage spending
D. converts a recession into a depression
E. serves as an automatic stabilizer for the economy
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