If It Were Not for the Automatic Stabilizers in the U.S.economy

question 30

Multiple Choice

If it were not for the automatic stabilizers in the U.S.economy,

• A)the Federal Reserve would have less reason than it has now to monitor stock prices.
• B)it would be more desirable than it is now for the Federal Reserve to target an interest rate.
• C)a strict balanced-budget rule would be more desirable than it is now.
• D)output and employment would probably be more volatile than they are now.

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