A Feature of Automatic Stabilizers Is That They

question 9

Multiple Choice

A feature of automatic stabilizers is that they:

• A)guarantee that the federal budget will be balanced over the course of the business cycle..
• B)do not require any legislative action by Congress to take effect.
• C)simultaneously stabilize an economy and reduce the size of the public debt
• D)automatically result in surpluses during recessions and deficits during economic booms
• E)automatically decrease the price level during inflation and increase the price level during deflation.

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