Automatic Stabilizers Refer to

question 107

Multiple Choice

Automatic stabilizers refer to

• A)the money supply and interest rates that automatically increase or decrease along with the business cycle.
• B)government spending and taxes that automatically increase or decrease along with the business cycle.
• C)changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives.
• D)changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives.

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Definitions:

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