Automatic Stabilizers Refer to

question 107

Multiple Choice

Automatic stabilizers refer to

• A)the money supply and interest rates that automatically increase or decrease along with the business cycle.
• B)government spending and taxes that automatically increase or decrease along with the business cycle.
• C)changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives.
• D)changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives.

---

Definitions:

Trading in Securities

The practice of buying and selling stocks, bonds, and other financial instruments, typically for short-term profit.

Audit Committee

A subgroup of a company's board of directors that oversees the financial reporting and disclosure process, working closely with auditors.

Sarbanes-Oxley Act of 2002

A U.S. federal law that established sweeping auditing and financial regulations for public companies to protect investors from fraudulent financial reporting.