Do Automatic Fiscal Stabilisers Eliminate Business Cycles

question 65

Multiple Choice

Do automatic fiscal stabilisers eliminate business cycles?

• A) Yes
• B) No, they make business cycle fluctuations more severe.
• C) No, because they have no effect if the business cycle is the result of some unanticipated change.
• D) No, they increase the likelihood that a business cycle occurs.
• E) No, but they do moderate business cycles.

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