During an Expansion, Which of the Following Occur Because of Automatic

question 61

Multiple Choice

During an expansion, which of the following occur because of automatic stabilizers?
I. Income tax revenues tend to rise.
II. Government transfer payments tend to rise.
III. The government's budget deficit tends to fall or its budget surplus tends to rise.
IV. They tend to amplify the rise in real GDP.

• A) I and III only
• B) I, II, and III only
• C) I, III, and IV only
• D) I, II, III, and IV

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