Automatic destabilizing policies would tend to
A) negate inflation and stimulate expansion.
B) promote the nation's exports.
C) reinforce inflationary pressures and deepen recessionary conditions.
D) decrease the nation's imports.

Question

Quizplus · Accepted Answer

Automatic destabilizing policies refer to economic policies that exacerbate or prolong economic fluctuations, such as inflation or recession. These policies can include changes in taxes, government spending, or interest rates. By their nature, these policies would reinforce inflationary pressures during times of inflation and deepen recessionary conditions during periods of recession, making option C the correct answer. The other options, while potentially impacted by economic policies, are not directly related to automatic destabilizing policies.

Automatic Destabilizing Policies Would Tend to