A Major Advantage of the Built-In or Automatic Stabilizers Is

question 47

Multiple Choice

A major advantage of the built-in or automatic stabilizers is that they

• A) simultaneously stabilize the economy and reduce the absolute size of the public debt.
• B) automatically produce surpluses during recessions and deficits during inflations.
• C) require no legislative action by Congress to be made effective.
• D) guarantee that the federal budget will be balanced over the course of the business cycle.