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"Built-In Stabilizers"imply That

Question 60

Multiple Choice

"Built-in stabilizers"imply that:


A) an annually balanced budget will automatically offset the pro-cyclical tendencies created by state and local finance and thereby stabilizes the economy.
B) with given tax rates and expenditures policies, a rise in Y will increase the budget balance, while a decline in Y will reduce the budget balance without any action on the part of government.
C) Parliament will automatically change the tax structure and expenditure programs to correct upswings and downswings in business activity.
D) government expenditures and tax receipts automatically balance over the business cycle, though they may be out of balance in any single year.

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