Which of the following statements is NOT true?
A) All else equal, during a recession the presence of automatic stabilizers makes the fiscal policy expansionary.
B) All else equal, during an expansion the presence of automatic stabilizers makes the fiscal policy contractionary.
C) All else equal, during a recession, the presence of automatic stabilizers decreases the budget deficit of the government.
D) All else equal, during an expansion, the presence of automatic stabilizers decreases the debt of the government.
Correct Answer:
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