In order to be called an automatic, or built-in, stabilizer, which of the following must taxes automatically do in a recessionary period and in an inflationary period? Recessionary Period Inflationary Period

In order to be called an automatic, or built-in, stabilizer, which of the following must taxes automatically do in a recessionary period and in an inflationary period?
Recessionary Period Inflationary Period




(A) Decrease, Decrease
(B) Decrease, Increase
(C) Increase, Decrease
(D) Increase, Increase
(E) No change, No change





Answer: B


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