When the Economy Enters a Recession, Automatic Stabilizers Create

question 5

Multiple Choice

When the economy enters a recession, automatic stabilizers create:

• A) higher taxes.
• B) more discretionary spending.
• C) budget deficits.
• D) budget surpluses.

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Definitions:

Mens Rea

A legal term referring to the intent or knowledge of wrongdoing that constitutes part of a crime.

Actus Reus

The physical act of committing a crime, as opposed to the mental intent to commit the crime.

Responsible Corporate Officer Doctrine

A common law doctrine under which the court may impose criminal liability on a corporate officer for actions of employees under her or his supervision regardless of whether she or he participated in, directed, or even knew about those actions.

Criminal Vicarious Liability Doctrine

A legal principle holding one person or entity responsible for the criminal actions of another, typically in an employer-employee relationship.