Author Question: Automatic stabilizers are government programs that tend to push the federal budget toward surplus as ... (Read 62 times)

scienceeasy · **on:** Jun 30, 2018

Automatic stabilizers are government programs that tend to push the federal budget toward surplus as the real GDP rises and toward deficit as the real GDP falls.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If the rate of inflation in a given time period turns out to be higher than lenders and borrowers anticipated, then the effect will be:
a. a redistribution of wealth from borrowers to lenders.
b. a net gain in purchasing power for lenders relative to borrowers.
c. no change in the distribution of wealth between lenders and borrowers.
d. none of these.