An Illustration of the Term "Automatic Stabilizer" Is Provided by

question 218

Multiple Choice

An illustration of the term "automatic stabilizer" is provided by

• A)The tendency of tax collections to rise as the economy moves into a recession.
• B)The tendency of tax collections to fall as the economy moves into a recession.
• C)Increases in tax rates as the economy moves into a recession.
• D)Decreases in tax rates as the economy moves into a recession.
• E)Public works designed to get the economy out of a depression.

---

Definitions:

Note Receivable

A promissory note indicating that an entity is owed money by another and the terms under which repayment must occur.

NSF Check

A check that cannot be processed due to insufficient funds in the account it's drawn on, also known as a "bounced" check.

Internal Control Activities

Procedures and policies designed to safeguard a company’s assets, enhance the reliability of financial reporting, and ensure compliance with laws and regulations.

Globally

Refers to an action or concept considered or applied worldwide.