6. Which of the following is an example of an automatic stabilizer? a. When the economy goes...
Question:
6. Which of the following is an example of an automatic stabilizer?
a. When the economy goes into a recession, more people become eligible for employment insurance benefits.
b. When the economy goes into a recession, stock prices decline, particularly for firms in cyclical industries.
c. When the economy goes into a recession, Parliament begins hearings about a possible stimulus package.
d. When the economy goes into a recession, the Bank of Canada changes its target for the overnight rate.
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