The effectiveness of the built-in or automatic stabilizers is limited because:

A)the stabilizers produce budget surpluses during recessions.
B)transfer payments and subsidies increase during inflation and decrease during recessions.
C)the offset the stabilizers provide to a change in private spending is less than the change in private spending.
D)the stabilizers raise the general price level regardless of the phase of the business cycle.

ANSWER
:

C)
the offset the stabilizers provide to a change in private spending is less than the change in private spending.