Which of the following statements about automatic stabilizers in Canada is the most accurate?
A) They are the responsibility of the provinces since they, unlike the federal government, do not face lag problems.
B) They are controlled by the Bank of Canada to help manage the business cycle.
C) They are able to completely eliminate all the lag problems associated with fiscal policy.
D) They are changes in government transfer payments and tax revenues that vary automatically and inversely to business cycle changes.
Correct Answer:
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