When the economy is in a​ recession, ________ taxes decrease while​ ________ spending increases​ and, as a result of this automatic fiscal​ policy, aggregate demand​ ________.

A.​induced; discretionary; is not changed
B.needsminus​tested; ​induced; decreases
C. ​discretionary; needsminus​tested; increases
D.discretionary; induced; is not changed
E. ​induced; needsminus​tested; increases

ANSWER:

E. ​induced; needsminus​tested; increases