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When an Economy Expands into an Economic Boom, Automatic Stabilizers

Question 89

Multiple Choice

When an economy expands into an economic boom, automatic stabilizers will tend to


A) enlarge the budget deficit (or reduce the surplus) .
B) reduce the budget deficit (or increase the surplus) .
C) ensure that the budget will remain in balance.
D) reduce the supply of money and, thereby, retard aggregate demand.

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