Which One of the Following Happens Automatically If the Economy

question 70

Multiple Choice

Which one of the following happens automatically if the economy goes into a recession?

• A)Revenues decrease and government outlays do not change.
• B)Government outlays increase and revenues do not change.
• C)The government budget deficit decreases.
• D)Both government outlays and revenues increase, and the deficit stays the same.
• E)The government budget deficit increases or the government budget surplus decreases.

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Definitions:

Time To Expiration

The remaining period until a derivative contract such as an option or a futures contract becomes invalid or terminates.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified timeframe.

Variance Of Return

A statistical measure of the dispersion of returns for a given security or market index, quantifying the volatility or risk associated with investing in it.

Put Option

A put option is a financial contract that gives the holder the right to sell an asset at a specified price within a specific time period.