During Recessions,government Expenditure Automatically

question 274

Multiple Choice

During recessions,government expenditure automatically

• A)falls because of programs such as unemployment insurance and Medicaid.
• B)rises because of programs such as unemployment insurance and Medicaid.
• C)falls because of the progressive income tax system.
• D)rises because of the progressive income tax system.

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Definitions:

Maturity

The date on which a financial obligation, such as a bond or loan, is due to be fully paid off.

Obligations

A duty or responsibility to fulfill an agreement, such as financial repayments.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Payroll Tax Expense

The financial charge associated with employing labor, including taxes imposed by government entities such as Social Security and Medicare taxes in the United States.