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    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    An Example of an Automatic Stabilizer Is
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An Example of an Automatic Stabilizer Is

Question 145

Question 145

Multiple Choice

An example of an automatic stabilizer is


A) unemployment benefits.
B) a lowering of interest rates by the Fed.
C) a decrease in money demand.
D) a decrease in tax rates in response to a recession.

Correct Answer:

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