Automatic Stabilizers Are Considered

question 59

Multiple Choice

Automatic stabilizers are considered

• A) discretionary fiscal policies.
• B) discretionary monetary policies.
• C) non-discretionary fiscalpolicies.
• D) non-discretionary monetarypolicies.

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Definitions:

Fiscal Year

An accounting period of 12 months used by organizations for financial reporting and budgeting, distinct from the calendar year.

Premium Amortization

The process of gradually reducing the premium paid over the par value of a bond or other financial instrument over its life.

Straight-Line Method

A depreciation technique in which an asset loses equal value annually over its useful life.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, different from a calendar year.