单选题 The corporate income tax is an automatic stabilizer because:

A、 corporate profits are strongly counter-cyclical.
B、 corporate profits are strongly pro-cyclical.
C、 the corporate profits tax increases tax collections during recessions.

【正确答案】 B

【答案解析】Since corporate profits are strongly pro-cyclical, rising profits during expansionary periods automatically increase tax collections and work to cool off any inflationary pressures.