Built-In Stability Means That

Multiple Choice

Built-in stability means that

A) an annually balanced budget will offset the procyclical tendencies created by state and local finance and thereby stabilize the economy.
B) with given tax rates and expenditures policies, a rise in domestic income will reduce a budget deficit or produce a budget surplus, while a decline in income will result in a deficit or a lower budget surplus.
C) Congress will automatically change the tax structure and expenditure programs to correct upswings and downswings in business activity.
D) government expenditures and tax receipts automatically balance over the business cycle, though they may be out of balance in any single year.