If the Deficit Is Increasing Because of the Effects of Automatic

question 147

Multiple Choice

If the deficit is increasing because of the effects of automatic stabilizers, _____

• A) the budget is annually balanced.
• B) the economy is contracting.
• C) the annual budget deficit has approached zero.
• D) the budget is cyclically balanced.
• E) the economy is growing.

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Definitions:

Legal Person

An individual or organization capable of bearing legal rights and obligations, including the ability to enter into contracts and sue or be sued.

Corporation

A legal entity recognized by law as a separate entity from its owners, providing limited liability but allowing it to enter into contracts, sue, and be sued.

Sole Proprietor

A business structure where a single individual owns, manages, and bears the responsibilities for all aspects of the business.

Limited Liability

A legal status where a person's financial responsibility is limited to a fixed amount, usually the value of their investment in a company or partnership.