A Major Advantage of Automatic Stabilizers Is That They

question 19

Multiple Choice

A major advantage of automatic stabilizers is that they:

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