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 113 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
Great answer, keep it coming :)

AISCAMPING

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

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
Many diesel fuel additives increase the cetane rating which results in improved fuel economy. Many diesel fuel additives increase the cetane rating which results in improved fuel economy.
Japan’s Economy and Society Japan’s Economy and Society
Rising sea levels will affect millions in coastal zones and on islands Rising sea levels will affect millions in coastal zones and on islands
Soybean plants in nitrogen-poor soil show how root nodules affect growth. Only the darker green plan Soybean plants in nitrogen-poor soil show how root nodules affect growth. Only the darker green plan
Concepts related to cancer affect the types of cancer Concepts related to cancer affect the types of cancer
Video: Mendel's Principles of Dominance, Segregation and Independent Assortment

For a complete list of videos, visit our video library