Question

Which of the following policies represents an automatic stabilizer with respect to fiscal policy?A. Elected officials decide to raise the minimum wage just as the economy starts to slow down. B. The government builds more roads to reduce commuting time. C. As corporations report lower profits, their tax bill falls. D. The government agrees to review income tax rates whenever economic conditions warrant.

Answer 1

C. As corporations report lower profits, their tax bill falls.

Step-by-step explanation:

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