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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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