Automatic Stabilizers

question 93

Multiple Choice

Automatic stabilizers

• A)have no effect on the magnitude of the government expenditure multiplier.
• B)increase the magnitude of the tax multiplier.
• C)decrease the magnitude of the government expenditure multiplier.
• D)increase the magnitude of the government expenditure multiplier.
• E)reduce the government expenditure multiplier to zero.

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Definitions:

Creditors

Individuals or entities that a company owes money to because they have provided goods or services on credit.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Corporation's Assets

The resources owned by a corporation that have economic value and can be used to meet its financial obligations.

Preferred Stockholders

Preferred stockholders are investors who own shares of a company's preferred stock, which often provides fixed dividends and priority over common stockholders in asset liquidation.