Approaches the peak of a business cycle

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As the economy expands and approaches the peak of a business cycle, which of the following tends to happen automatically, without a specific change in policy?

A. Inflation lowers the value of monetary assets and increases the value of real assets.

B. government expenditure deciles

C. tax revenues go down under progressive income tax system

D. tax revenues go up under progressive income tax system

Reference no: EM13836921

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