Automatic stabilizers are one of the __________ policy tools.

A. Monetary
B. Trade
C. Fiscal
D. Investment

Submitted by: Areesha Khan

Automatic stabilizers (e.g., unemployment benefits, progressive taxes) are part of fiscal policy, as they help stabilize the economy without direct government intervention.

Monetary policy is controlled by central banks (e.g., interest rates).
Trade policy deals with exports and imports.
Investment is a private or government expenditure.

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The correct answer to the question: "Automatic stabilizers are one of the __________ policy tools." is "Fiscal".