Which of the following best describes the operation of ‘automatic stabilisers’? Select one: a. Some components of government spending inevitably increase when output falls. b. The economy always tends toward full employment. c. When saving increases, investment increases. d. When consumption falls, investment increases.

Which of the following best describes the operation of ‘automatic stabilisers’? Select one: a. Some components of government spending inevitably increase when output falls. b. The economy always tends toward full employment. c. When saving increases, investment increases. d. When consumption falls, investment increases.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 1.1P

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