Automatic Fiscal Stabilizers ________ the Impact of Demand or Supply

question 89

Multiple Choice

Automatic fiscal stabilizers ________ the impact of demand or supply shocks on the economy since government's net tax revenues ________ during booms and ________ during recessions.

• A)magnify; increase; decrease
• B)magnify; decrease; increase
• C)dampen; increase; decrease
• D)dampen; decrease; increase
• E)does not affect; are constant; are constant

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Definitions:

Independent Directors

Independent directors are members of a board of directors who do not have a material or pecuniary relationship with the company or its related entities, ensuring unbiased oversight.

Common Stock

A type of equity ownership in a corporation, giving holders voting rights and a share of profits in the form of dividends.

Ownership Share

The portion of a company or asset owned by an individual or entity, typically represented by stock in the company.

Corporation

A legal entity recognized by law, formed to conduct business and capable of suing or being sued.