A Feature of Automatic Stabilizers Is That They

question 9

Multiple Choice

A feature of automatic stabilizers is that they:

• A)guarantee that the federal budget will be balanced over the course of the business cycle..
• B)do not require any legislative action by Congress to take effect.
• C)simultaneously stabilize an economy and reduce the size of the public debt
• D)automatically result in surpluses during recessions and deficits during economic booms
• E)automatically decrease the price level during inflation and increase the price level during deflation.

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Definitions:

Tender Offer

A public, open offer or invitation (usually made by a company) to all shareholders to sell their shares at a particular price during a specified time.

Proxy Contest

A competition for the control or influence over a company by requiring shareholders to vote by proxy.

Shareholder Votes

The process by which shareholders exercise their right to make decisions on corporate matters, typically exercised during annual general meetings.

Board of Directors

A group of individuals elected by shareholders to oversee the management and governance of a corporation.