Which of the following best describes the built-in stabilizers as they function in the United States?
A) Personal and corporate income tax collections automatically fall and transfers and subsidies automatically rise as the national income rises.
B) Personal and corporate income tax collections and transfers and subsidies all automatically vary inversely with the level of national income.
C) Personal and corporate income tax collections automatically rise and transfers and subsidies automatically decline as national income rises.
D) Personal and corporate income tax collections and transfers and subsidies all automatically vary directly with the level of national income.
Correct Answer:
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