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An Automatic Stabilizer

Question 126

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An automatic stabilizer


A) keeps taxes and government spending in a constant ratio to each other throughout the business cycle
B) increases taxes relative to government spending during contractions and decreases it in expansions
C) decreases taxes relative to government spending during contractions and increases it in expansions
D) increases taxes relative to government spending throughout the business cycle
E) decreases taxes relative to government spending throughout the business cycle

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