The Federal Budget Deficit Acts as an Automatic Stabilizer Because

question 265

Multiple Choice

The federal budget deficit acts as an automatic stabilizer because

• A)government tax revenues decrease during a recession.
• B)unemployment insurance payments decrease during a recession.
• C)food stamp payments increase during expansionary periods.
• D)Medicaid payments increase during expansionary periods.

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Definitions:

Distressing Situation

A situation or environment that causes emotional or mental discomfort.

Early Schools

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A collection of guidelines aimed at ensuring business is carried out ethically and with honesty by professionals.