Question #83

The automatic stabilisers that are built into fiscal policy ensure that

• every decline in non-government spending will be attenuated by the rise in the budget deficit.
• eventually the economy will resume growth after non-government spending falls because the budget deficit rises.
• a rise in private saving does not cause a rise in unemployment.

Answer #799

Answer: every decline in non-government spending will be attenuated by the rise in the budget deficit.

Explanation

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