Automatic Stabilizers Are Government Programs That Tend to

question 131

Multiple Choice

Automatic stabilizers are government programs that tend to

• A)reduce the ups and downs in aggregate demand without legislative action.
• B)bring expenditures and revenues automatically into balance without legislative action.
• C)signal Congress that legislative changes are needed.
• D)increase tax collections automatically during a recession.

Compute savings from issuing new bonds at a lower interest rate after calling old bonds.

Calculate the profit from converting bonds into stock.

Understand the practical implications of bond interest rates and market prices on investment decisions.

Calculate the total cost of purchasing a bond, including accrued interest and commission.

---

Definitions:

Herbal Remedies

Medicinal products made from plants, herbs, or botanical sources used for their therapeutic or healing properties.

Regulated

Controlled or governed according to rules, standards, or laws to ensure proper operation or behavior.

Kava

A beverage made from the roots of the kava plant, traditionally consumed in the Pacific Islands, known for its sedative and anxiolytic effects.

Calmative

An agent or approach that has a calming effect, reducing excitement or anxiety.