Which of the following is an example of amplifying feedback?

When consumption rises, investment goes up; when investment rises, consumption increases.
The temperature rises as the furnace runs; as the temperature rises, the furnace turns off.
When less gasoline is available, the price rises; when price rises, people use less gasoline.
When Joe studies more, he gets higher test scores; as he gets higher test scores, he studies less.

Keynesian economics says that higher taxes reduce total spending. Suppose a country enters a recession and as a result tax receipts fall. Of the following possibilities, which would Keynesian economics recommend?

Raise taxes to produce a surplus
Raise taxes to balance the budget
Leave taxes alone but cut spending enough to balance the budget.
Do nothing; the reduction in taxes caused by recession is an automatic stabilizer.

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