Which One of the Following Happens Automatically If the Economy

question 69

Multiple Choice

Which one of the following happens automatically if the economy goes into a recession?

• A)Government outlays increase and revenues do not change.
• B)Revenues decrease and government outlays do not change.
• C)The government budget deficit increases or the government budget surplus decreases.
• D)The government budget deficit decreases.
• E)Both government outlays and revenues increase, and the deficit stays the same.

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Definitions:

Drawee

The party upon whom a cheque, draft, or other negotiable instrument is drawn and who is responsible for its payment.

Maker

In financial terms, the party that promises to pay a certain amount of money in a promissory note or check.

Signature Liability

The legal responsibility that comes from the act of signing a document, indicating agreement or consent to its terms and conditions.

Liable

Responsible by law; legally answerable for one's actions or inactions.