Question

Automatic stabilizers refer to
A) government spending and taxes that automatically increase or decrease along with the business cycle.
B) changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives.
C) changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives.
D) the money supply and interest rates that automatically increase or decrease along with the business cycle.

Answer 1

Automatic stabilizers refer to the money supply and interest rates that automatically increase or decrease along with the business cycle.