During Economic Contractions,transfer Payments Such as Welfare Benefits

question 60

Multiple Choice

During economic contractions,transfer payments such as welfare benefits

• A)automatically increase,reducing incomes further
• B)automatically increase,reducing the impact of the contraction on disposable income
• C)automatically decrease,because tax revenues fall and welfare benefits are no longer affordable
• D)are decreased,as a discretionary move on the part of Congress to stimulate expansion
• E)are increased,as a discretionary move on the part of Congress to cushion recipients against the negative effects of economic contraction

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