This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What are automatic stabilizers and how do they affect the economy? Which is the most ... (Read 105 times)

TVarnum

  • Hero Member
  • *****
  • Posts: 548
on: Jun 30, 2018
What are automatic stabilizers and how do they affect the economy? Which is the most important?

Question 2

For a bank to have lending power, its required reserves must:
 a. be smaller than its legal reserves.
  b. exceed its legal reserves.
  c. be smaller than its excess reserves.
  d. exceed its excess reserves.
  e. exceed its vault cash.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Sweetkitty24130

  • Sr. Member
  • ****
  • Posts: 291
Reply #1 on: Jun 30, 2018
Answer to Question 1

Automatic stabilizers are changes in government transfer payments or tax collections that happen automatically and whose effects vary inversely with business cycles. The tax system is the most important automatic stabilizer. Other automatic stabilizers are unemployment compensation and welfare payments.

Answer to Question 2

a


TVarnum

  • Member
  • Posts: 548
Reply 2 on: Jun 30, 2018
Excellent

komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Major trunk lines carrying long-distance traffic crisscrossed the area east of the Mississippi. The Major trunk lines carrying long-distance traffic crisscrossed the area east of the Mississippi. The
A child in an orphanage in Juba, Sudan. The treatment of this child is likely to affect his ability ... A child in an orphanage in Juba, Sudan. The treatment of this child is likely to affect his ability ...
Oil supply and prices affect the economies of nations Oil supply and prices affect the economies of nations
Basic structure of automatic pathway Basic structure of automatic pathway
Factors That Affect BP Factors That Affect BP
Genes, hormones, and activity affect weight Genes, hormones, and activity affect weight
Video: Passive Smoke Exposure

For a complete list of videos, visit our video library