An 'Automatic Stabiliser' Is

Multiple Choice

An 'automatic stabiliser' is:

A) a policy for growth of an economy where the current account of the balance of payments is kept in balance.
B) a monetary or fiscal policy that aims to smooth out the business cycle.
C) the tendency for inflation to fall as unemployment rises.
D) a tax or form of government expenditure that has the effect of reducing the size of business cycle fluctuations.