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An Automatic Stabilizer _____

Question 66

Multiple Choice

An automatic stabilizer _____


A) increases inflationary pressure during expansions.
B) increases the drop in disposable income during recessions and increases the jump in disposable income during expansions.
C) reduces the drop in disposable income during recessions and reduces the jump in disposable income during expansions.
D) increases tax revenue relative to government spending throughout the business cycle.
E) decreases tax revenue relative to government spending throughout the business cycle.

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