The Most Important Automatic Stabilizer Is

question 42

Multiple Choice

The most important automatic stabilizer is

• A)open-market operations.
• B)the tax system.
• C)unemployment compensation.
• D)welfare benefits.

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Definitions:

Matching Principle

An accounting concept stating that expenses should be matched with the revenues they help to generate, ensuring accurate financial reporting.

Working Capital

The difference between a company’s current assets and current liabilities, showing its short-term financial health and operational efficiency.

Vendors

Entities that supply goods or services to another, typically for business purposes.

Slow Paying

The practice of delaying payments beyond the agreed terms, often indicative of cash flow issues or strategic payment management.