Multiple Choice
During economic contractions,transfer payments such as welfare benefits _____.
A) automatically increase,reducing income further.
B) automatically increase,reducing the impact of the contraction on disposable income.
C) automatically decrease because tax revenues fall and welfare benefits are no longer affordable.
D) are decreased as a discretionary move on the part of Congress to stimulate expansion.
E) are increased as a discretionary move on the part of Congress to cushion recipients against the negative effects of economic contraction.
Correct Answer:
Verified
Correct Answer:
Verified
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