Automatic Stabilizers Cause

question 35

Multiple Choice

Automatic stabilizers cause:

• A)deeper recessions and more rapid expansions.
• B)deeper recessions and slower expansions.
• C)shallower recessions and slower expansions.
• D)shallower recessions and more rapid expansions.

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Definitions:

Credit Memo

A document issued by a seller that reduces the amount owed by a buyer, typically due to a return or rebate.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer assumes responsibility for the goods and their transportation costs from the point of departure.

Insurance in Transit

Insurance in transit covers risk to goods and materials while they are being transported from one location to another.

Inventory Costs

Expenses associated with storing and managing goods that a company holds for sale.