17. . An increased federal budget deficit during a recession serves as an automatic economic stabilizer because: increased transfer payments from unemployment insurance partly offset the fall in household income.lower personal income translates into lower tax load and so consumption spending declines slightly less.lower corporate profits translate into lower tax load and so investment spending declines slightly less.all of the above.

The federal budget is an itemized plan for the United States' annual public expenditures. It is used…

Answered: . An increased federal budget deficit…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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17.

. An increased federal budget deficit during a recession serves as an automatic

economic stabilizer because:

increased transfer payments from unemployment insurance partly offset the fall in household income.
lower personal income translates into lower tax load and so consumption spending declines slightly less.
lower corporate profits translate into lower tax load and so investment spending declines slightly less.
all of the above.

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