Transfer Payments (Such as Welfare Payments and Employment- Insurance Benefits)act

Transfer payments (such as welfare payments and employment- insurance benefits) act as automatic stabilizers because they

A) increase the government surplus during the expansionary phase of the business cycle.
B) increase the debt- to- GDP ratio during the expansionary phase of the business cycle.
C) increase the swings of the business cycle and make an annually balanced budget much harder to achieve.
D) increase the swings of the business cycle but make an annually balanced budget much easier to achieve.
E) decrease the swings of the business cycle but make an annually balanced budget much harder to achieve.