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  3. Study Set
    Economics The Basics
  4. Exam
    Exam 11: Fiscal Policy
  5. Question
    During a Recession,the Budget Deficit Generally Increases Because Tax Revenues
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During a Recession,the Budget Deficit Generally Increases Because Tax Revenues

Question 3

Question 3

Multiple Choice

During a recession,the budget deficit generally increases because tax revenues weaken while expenditures rise.This increase is known as the


A) automatic stabilizer.
B) net stimulus increase.
C) automatic increase.
D) fiscal stabilizer.

Correct Answer:

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