During Economic Contractions,transfer Payments Such as Welfare Benefits _____

question 57

Multiple Choice

During economic contractions,transfer payments such as welfare benefits _____.

• A)automatically increase,reducing income further.
• B)automatically increase,reducing the impact of the contraction on disposable income.
• C)automatically decrease because tax revenues fall and welfare benefits are no longer affordable.
• D)are decreased as a discretionary move on the part of Congress to stimulate expansion.
• E)are increased as a discretionary move on the part of Congress to cushion recipients against the negative effects of economic contraction.

---

Definitions:

Consolidate

The process of combining financial statements from different entities within a group to produce a single set of financial statements.

Control Over Receivables

The management and oversight practices applied to ensure efficient collection of amounts owed to a company.

Transferred Assets

Transferred Assets involve the movement of assets from one entity, location, or owner to another, often for the purpose of restructuring or mergers.

Consolidate Securitization Entities

The process of merging off-balance sheet securitization entities into the main company's financial statements for greater transparency.