When Automatic Stabilizers Are the Cause of Higher Deficits,we Would

question 32

Multiple Choice

When automatic stabilizers are the cause of higher deficits,we would expect to observe that

• A)the economy has been contracting
• B)the economy has been growing
• C)interest rates must be rising
• D)interest rates must be falling
• E)net exports have been decreasing

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Definitions:

Pakicetus

An extinct genus of early whales living in the Eocene epoch, illustrating a significant stage in the transition from land to sea creatures.

Modern-day Whales

Current species of whales that descended from land-dwelling ancestors through a series of evolutionary transitions over millions of years.

Hippopotamus

A large, mostly herbivorous mammal native to sub-Saharan Africa, known for its large size, semi-aquatic habits, and aggressive nature.

Hemagglutinins

Proteins found on the surface of certain viruses, like influenza, that enable the virus to bind to and infect host cells.