A Major Advantage of the Built-In or Automatic Stabilizers Is

question 47

Multiple Choice

A major advantage of the built-in or automatic stabilizers is that they

• A) simultaneously stabilize the economy and reduce the absolute size of the public debt.
• B) automatically produce surpluses during recessions and deficits during inflations.
• C) require no legislative action by Congress to be made effective.
• D) guarantee that the federal budget will be balanced over the course of the business cycle.

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Definitions:

Aggressors

Aggressors are individuals or entities that initiate hostility or conflict, often without provocation.

Institutional Investors

Organizations that invest large sums of money into securities, real estate, and other investment assets.

Shares

Units of ownership interest in a corporation or financial asset, which provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Merger Control Statutes

Laws and regulations that govern the merging of companies to prevent anti-competitive practices and ensure market fairness.