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When the U.S.economy Hits a Recession,fiscal Policy

Question 73

Multiple Choice

When the U.S.economy hits a recession,fiscal policy:


A) automatically becomes expansionary because average tax rates go down and spending on welfare programs goes up.
B) is always discretionary because the government is quick to react to changes in the business cycle.
C) automatically becomes contractionary because average tax rates go up and spending on welfare programs goes down.
D) automatically becomes contractionary because average tax rates go down and spending on welfare programs goes up.

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