Automatic Stabilizers

question 84

Multiple Choice

Automatic stabilizers

• A) minimize fluctuations in the economy.
• B) must be authorized by the President.
• C) decrease taxes during expansions.
• D) increase welfare payments during expansions.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company to be reinvested in its core business or to pay debt.

Business Expansion

The process of increasing the scale or scope of a company's operations, often through new ventures, acquisitions, or increased market share.

Retained Earnings

The portion of a company's profits that are kept or retained and not paid out as dividends to shareholders.

Retained Earnings

The amount of net earnings remaining for the company after distributing dividends to its shareholders.