Which of the Following Occurs Automatically During a Recession

question 26

Multiple Choice

Which of the following occurs automatically during a recession?

• A) Tax revenues increase.
• B) The budget deficit becomes greater.
• C) Government spending decreases.
• D) The money supply increases.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of the company.

Legal Persons

Entities, such as corporations or governmental bodies, that are recognized by law as having rights and responsibilities similar to natural persons.

Corporate Power

The legal authority and inherent capacities that a corporation possesses to conduct business, enter into contracts, and own assets.

Board of Directors

A group of individuals elected to represent shareholders and make decisions on major company issues, including strategy, governance, and overall direction.