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Which of the Following Is True

Question 217

Multiple Choice

Which of the following is true?


A) Automatic stabilizers are used to eliminate recessions.
B) Discretionary fiscal policy cannot eliminate a recession.
C) Automatic stabilizers help to reduce the impact of a recession.
D) Discretionary fiscal policy can automatically eliminate a recession.
E) Automatic stabilizers make discretionary policy more effective by increasing the magnitude of the multipliers.

Correct Answer:

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