The existence of automatic stabilizers causes:
A) the size of the budget deficit to remain constant as the economy enters a recession.
B) the size of any budget deficit to decrease as the economy enters a recession.
C) the size of any budget deficit to increase as the economy enters a recession.
D) the size of the budget surplus to increase as the economy enters a recession.
Correct Answer:
Verified
Q188: Q189: Disposable income: Q190: If the consumption function is C = Q191: If the economy finds itself at a Q192: Assume there is no government or foreign Q194: If the marginal propensity to consume is Q195: If the marginal propensity to save is Q196: If you save $20 when you experience Q197: If the economy finds itself at a Q198: If the government collects taxes using a
A) increases when income increases.
B) decreases
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