Many States Have Rules Requiring That They Balance Their Budgets

question 16

Multiple Choice

Many states have rules requiring that they balance their budgets.These rules:

• A) make automatic stabilizers more effective.
• B) fully offset the effects of automatic stabilizers at the federal level.
• C) help ensure that the federal government budget will be balanced.
• D) limit the ability of government at all levels to offset the effects of a recession.

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Definitions:

Incorporation

The process of legally declaring a corporate entity as separate from its owners.

Outside Director

A member of a company's board of directors who is not part of the company's executive staff and is theoretically impartial.

Business Contacts

Individuals or organizations that are involved in business dealings or can provide valuable connections and opportunities in the business world.

Affiliated Director

A board member who has a close relationship with the company or its principals, which could affect impartiality.