Built-In Stability Means That

question 27

Multiple Choice

Built-in stability means that

• A)an annually balanced budget will offset the procyclical tendencies created by state and local finance and thereby stabilize the economy.
• B)with given tax rates and expenditures policies, a rise in domestic income will reduce a budget deficit or produce a budget surplus, while a decline in income will result in a deficit or a lower budget surplus.
• C)Congress will automatically change the tax structure and expenditure programs to correct upswings and downswings in business activity.
• D)government expenditures and tax receipts automatically balance over the business cycle, though they may be out of balance in any single year.

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Definitions:

Psychoactive Drug

A chemical substance that affects the central nervous system and alters brain function, resulting in temporary changes in perception, mood, consciousness, and behavior.

Compound Drug

A medication that is made by combining two or more active pharmaceutical ingredients.

Hallucinogens

Substances that induce alterations in perception, mood, and thought, often causing visual or auditory hallucinations.

Amphetamines

A class of stimulant drugs that affects the central nervous system, increasing energy and alertness, but with potential for abuse and addiction.