During Recessions,automatic Stabilizers Tend to Make the Government's Budget

question 57

Multiple Choice

During recessions,automatic stabilizers tend to make the government's budget

• A)move toward deficit.
• B)move toward surplus.
• C)move toward balance.
• D)not necessarily move the budget in any particular direction.

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Definitions:

Consolidated Equity

The total equity of a parent company and its subsidiaries after intercompany balances and transactions have been eliminated.

Equity Method

An accounting technique used in consolidating financial statements whereby an investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net income or losses.

Voting Shares

Shares of a company's stock that grant the shareholder the right to vote on corporate matters.

Purchase

The acquisition of goods or services in exchange for money, contributing to a company's expenses.