When the U.S. economy hits a recession, fiscal policy automatically becomes:
A) expansionary because average tax rates go down and spending on welfare programs goes up.
B) discretionary because the government is quick to react to changes in the business cycle.
C) contractionary because average tax rates go up and spending on welfare programs goes down.
D) contractionary because average tax rates go down and spending on welfare programs goes up.
Correct Answer:
Verified
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