Transfer Payments That Increase as GDP Falls Are a Type

question 359

True/False

Transfer payments that increase as GDP falls are a type of automatic stabilizer in the economy.

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Definitions:

Constant Rate

A fixed percentage or value that does not change over time in a given context.

Constant Dividend Growth Model

A method to estimate the value of a company's stock, assuming that its dividends grow at a constant rate indefinitely.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments.

Market Value

The current price at which an asset or service can be bought or sold, determined by supply and demand in the marketplace.