What Happens Typically to a Budget Deficit During a Recession

question 121

Multiple Choice

What happens typically to a budget deficit during a recession?

• A)It increases because of tax changes.
• B)It decreases because of spending decreases.
• C)It decreases automatically.
• D)It increases automatically.

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Definitions:

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which typically reduces the price of individual shares without changing the total market value.

Market Value

The current price at which an asset or service can be bought or sold, often used in the context of stocks, real estate, and other investments.

Share Capital

The amount of money raised by a company through the issuance of shares to its shareholders.

Corporate Form

A legal structure for organizing a business as a separate entity, recognized by law as having its own rights and liabilities.