Unemployment insurance payments from the government

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Unemployment workers receive unemployment insurance payments from the government. Does the existence of unemployment insurance make it likely that consumption will fluctuate more or fluctuate less over the business cycle than it would in the absence of unemployment insurance? The existence of unemployment insurance makes it ---------which one (more likely, exactly as likely, or less likely)? that consumption will fluctuate over the business cycle. The primary explanation for this is because: A. with unemployment insurance, business investment fluctuate less over the business cycle. B. with unemployment insurance , current disposable income fluctuates less over the business cycle. C. with unemployment insurance, household wealth fluctuate less over the business cycle. D. with unemployment insurance, interest rates unlikely to change with the business cycle.

Reference no: EM131096205

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