Which of the Following Is True About Automatic Stabilizers

question 72

Multiple Choice

Which of the following is true about automatic stabilizers?

• A)Automatic stabilizers are a part of discretionary fiscal policy.
• B)The federal funds rate is an example of an automatic stabilizer.
• C)An automatic stabilizer is any program that responds to fluctuations in the business cycle in a way that moderates the effects of those fluctuations.
• D)Any kind of trade policy adopted by the government will be considered as an automatic stabilizer.
• E)When income rises, automatic stabilizers increase/boost spending.

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