Which of the following is an example of an automatic stabilizer? When the economy goes into a

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Which of the following is an example of an automatic stabilizer? When the economy goes into a recession,

a. more people become eligible for unemployment insurance benefits.

b. stock prices decline, particularly for firms in cyclical industries.

c. Congress begins hearings about a possible stimulus package.

d. the Fed changes its target for the federal funds rate.

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Essentials Of Economics

ISBN: 9780357723166

10th Edition

Authors: N. Gregory Mankiw

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