Automatic stabilizers decrease the impact of a recession on the level of economic activity because they   Question content area bottom   Part 1   A.   increase taxes so the budget is always balanced.   B.   raise the exchange rate so U.S. exports become more attractive to foreigners.   C.   increase the quantity of money in circulation.   D.   mean disposable income does not change by as much as real GDP.   E.   reduce the interest rate and so allow firms to increase their level of investment.

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