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Introduction to Fiscal Policy
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Problem 10
Introduction to Fiscal Policy
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20. Fiscal Policy / Introduction to Fiscal Policy / Problem 9
Problem 9
How do automatic stabilizers help stabilize consumption during a recession?
A
By increasing disposable income through lower taxes, which boosts consumption.
B
By decreasing disposable income through higher taxes, which reduces consumption.
C
By increasing government spending on infrastructure projects.
D
By maintaining constant government spending regardless of economic conditions.
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