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When an Economy Dips into Recession, Automatic Stabilizers Will Tend

Question 16

Multiple Choice

When an economy dips into recession, 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 remains in balance.
D) expand the supply of money and, thereby, stimulate aggregate demand.

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