Sales or purchases of government securities on open market

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Reference no: EM131173915

Explain whether each of the following is a (1) discretionary fiscal policy, (2) an automatic stabilizer, or (3) not a fiscal policy.

Government spending on infrastructure, such as highways and bridges

Treasury Department’s sales or purchases of government securities on the open market

Unemployment insurance paid to those who lose their jobs in a recession

Proportional income taxes

The Fed’s sales of government securities to affect the federal funds rate

A 5% decrease in all income taxes

Reference no: EM131173915

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