Automatic Stabilizers, Such as Tax Revenues and Transfer Payments, Eliminate

question 311

True/False

Automatic stabilizers, such as tax revenues and transfer payments, eliminate fluctuations in the business cycle.

---

Definitions:

Monthly Interest Rate

The percentage of interest that is charged or earned on a loan or investment over a month.

Materials Requirements Planning

A system used in manufacturing to calculate materials needed for production, ensuring the right materials are available at the right time and in the correct quantities.

Inventory Levels

The amount of goods and materials a company holds for the purpose of resale or production.

Credit Policy

Guidelines that a company follows to determine the creditworthiness of its customers and the terms of credit to extend.