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Automatic stabilizers have limits to their effectiveness because: A. the stabilizers produce budget surpluses during recessions B. Transfer payments and subsidies increase during inflation and
Automatic stabilizers have limits to their effectiveness because:
A. the stabilizers produce budget surpluses during recessions
B. Transfer payments and subsidies increase during inflation and decrease during recessions.
C. the offset the stabilizers provide to a change in private spending is less than the change in private spending
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