All of the Following Are Automatic Stabilizers EXCEPT

question 142

Multiple Choice

All of the following are automatic stabilizers EXCEPT

• A) discretionary increases in government spending.
• B) income transfer payments.
• C) progressive income tax system.
• D) unemployment compensation.

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Definitions:

Cost Method

An accounting approach used for recording investments, where the investment is recorded at its acquisition cost and adjustments are made for dividends or significant changes in value.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of a company’s profits and assets.