When automatic fiscal stabilizers are in place, a shock that causes a

When automatic fiscal stabilizers are in place, a shock that causes a fall in the level of economic activity automatically

a. results in a decline in the federal budget deficit that lessens the fall in income.
b. results in a rise in the federal deficit that lessens the fall in income.
c. requires the federal government to balance the budget.
d. will lead to a permanent increase in the budget deficit.
e. both a and b

ANSWER

B