Automatic Stabilizers Tend to Smooth Out the Business Cycle Because

question 21

True/False

Automatic stabilizers tend to smooth out the business cycle because they respond counter-cyclically to changes in national income.

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Definitions:

Fiduciary

An individual or organization that acts on behalf of another person or people, and is bound to act in their best interests with a duty of loyalty and care.

Apparent Authority

A doctrine in agency law whereby a principal is liable for the actions of an agent, as the agent appears to third parties to have the authority to act on behalf of the principal.

Express Authorization

Express authorization is a clear and direct granting of permission or power to act, often specified in writing, that delineates the scope and terms under which actions may be taken.

Consideration

The value (such as money, services, or goods) exchanged between parties in a contract, making the agreement legally binding.