The Main Reason That the Deficit Grows in a Recession

question 6

Multiple Choice

The main reason that the deficit grows in a recession is that

• A) the government reacts quickly and adjusts taxes to compensate.
• B) monetary policy that targets interest rates causes the costs of borrowing to fall.
• C) the deficit causes the recession, and reducing the deficit cures the recession.
• D) many forms of taxes act as automatic stabilizers.

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Definitions:

Medical Record

A comprehensive document containing a patient’s personal identification, health history, and details of medical care and treatments received.

Contractual Capacity

The legal ability of a person or entity to enter into a binding contract, having the mental and legal competency to do so.

Consent Form

A document that a person signs to give permission for a medical procedure, participation in research, or other activities after receiving and understanding all the relevant information.

Criminal Law

Involves crimes against the state. When a state or federal law is violated, the government brings criminal charges against the alleged offender.