The effectiveness of automatic stabilizers is limited by the fact that
A. Congress usually acts slowly in legislating changes in tax rates.
B. The stabilizers tend to raise the average price level regardless of the phase of the business cycle.
C. The offset that the stabilizers provide to a change in private spending is less than the change in private spending.
D. Transfer payments and subsidies increase during inflation and decrease during recessions.
C. The offset that the stabilizers provide to a change in private spending is less than the change in private spending.
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A) increases; do not change B) decreases; begin to decrease C) increases; begin to decrease D) decreases; begin to increase E) increases; begin to increase
The U.S. dollar bill
a. is fiat money b. cannot be used as a medium of exchange c. is backed by gold d. cannot be used as a store of value e. cannot be used as a payment for debts