Automatic Stabilizers Include

question 189

Multiple Choice

Automatic stabilizers include

• A)changes in induced taxes and changes in needs-tested spending.
• B)increases or decreases of tax rates and changes in needs-tested spending.
• C)changes in induced taxes and changes in discretionary spending.
• D)changes in discretionary spending and changes in needs-tested spending.
• E)changes in the federal funds interest rate brought about by Fed policy.

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Definitions:

Accounting Cycle

The series of steps in processing financial transactions, from the initial recording to the preparation of financial statements.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Current Liabilities

Financial commitments that need to be settled within a year or during the regular operation period of a company.

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.