Because of automatic stabilizers, in recessions the government budget deficit ________, while in expansions the deficit ________.
a. rises; rises
b. falls; rises
c. rises; falls
d. falls; falls
Answer: C
Because of automatic stabilizers, in recessions the government budget deficit ________, while in expansions the deficit ________.
a. rises; rises
b. falls; rises
c. rises; falls
d. falls; falls
Answer: C