Q.

When automatic fiscal stabilizers are in place, a shock that causes a fall in the kevel of economic activity automatically

A. Results in a decline in the federal budget deficit that lessens the fall in income
B. Results in a rise in the federal deficit that lessens the fall in income
C. Requires the federal government to balance the budget
D. Will lead to a permanent increase in the budget deficit
Answer» B. Results in a rise in the federal deficit that lessens the fall in income
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