Automatic Stabilizers Were Clearly in Evidence During the Recession of 2007-2009

question 66

Multiple Choice

Automatic stabilizers were clearly in evidence during the recession of 2007-2009 as

• A) tax revenues increased.
• B) tax revenues decreased.
• C) transfer payments decreased.
• D) tax revenues and transfer payments both decreased.

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Definitions:

Future Value

The value of an investment at a specific future date, including interest earned or compound interest.

Compounded Quarterly

A method of calculating interest where the interest earned each quarter is added to the principal, so that the balance doesn’t merely grow, it grows at an increasing rate.

Guaranteed Pay

An employment compensation structure where an employee is assured a specific amount of payment, regardless of performance or company profit.

Credit Union

A member-owned financial cooperative that provides traditional banking services, often with more favorable terms.