The Introduction of "Rainy-Day Funds" by States Would

question 101

Multiple Choice

The introduction of "rainy-day funds" by states would:

• A)decrease the procyclical nature of current state budgeting procedures.
• B)increase the procyclical nature of current state budgeting procedures.
• C)decrease the countercyclical nature of current state budgeting procedures.
• D)increase the countercyclical nature of current state budgeting procedures.

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Definitions:

S Corporation

A type of corporation that meets specific Internal Revenue Code requirements, allowing it to pass income directly to shareholders and avoid double taxation.

Subchapter S

A designation of corporations in the United States that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.

Federal Income Tax

Tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Controlling Shareholders

Individuals or entities that own a majority of a corporation's shares, giving them significant influence over its operations.