An example of an automatic stabilizer is:
A. the food stamp program.
B. changing the tax laws to increase the marginal tax rates.
C. the indexation of social security benefits to the consumer price index.
D. the interest the government pays on loans.
Answer:A
An example of an automatic stabilizer is:
A. the food stamp program. B. changing the tax laws to increase the marginal tax rates. C. the indexation of social security benefits to the consumer price index. D. the interest the government pays on loans.