A Federal Budget Deficit Acts as an Automatic Stabiliser Because

question 114

Multiple Choice

A federal budget deficit acts as an automatic stabiliser because:

• A)government tax revenues decrease during a recession.
• B)unemployment benefit payments decrease during a recession.
• C)tax receipts decrease during expansionary periods.
• D)Medicare payments increase during expansionary periods.

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Definitions:

Voidable Contract

A contract that may appear legally valid but can be rejected by one of the parties without legal consequence due to certain defects.

Ratification

The act of formally approving an agreement or decision, making it officially valid, often after the fact.

Acquiescence

Silent or passive acceptance or agreement without protest.

Concealment

The act of hiding or withholding important information, particularly in legal or financial contexts.