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"Automatic Fiscal Stabilization" in the Economy Refers to

Question 125

Multiple Choice

"Automatic fiscal stabilization" in the economy refers to


A) the properties of government spending and taxation that cause the simple multiplier to be increased.
B) the discretionary fiscal policies that are automatically undertaken by the government when there is a recessionary gap.
C) the properties of government spending and taxation that cause the simple multiplier to be reduced.
D) the discretionary fiscal policies that are automatically undertaken by the government when there is an inflationary gap.
E) all discretionary fiscal policies.

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