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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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