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Exam Code: MB-330

Exam Name: Microsoft Dynamics 365 for Finance and Operations, Supply Chain Management Exam

Certification Provider: Microsoft

Related Certification: Microsoft Dynamics 365 for Finance and Operations, Supply Chain Management Exam

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NEW QUESTION: 1
When an economy dips into a recession, automatic stabilizers will tend to alter government spending and taxation so as to:
A. enlarge the budget deficit (or reduce the surplus).
B. reduce interest rates, thus stimulating aggregate demand.
C. ensure that the budget will remain in balance.
Answer: A
Explanation:
Automatic stabilizers are built in features of the economy that tend to promote a budget deficit during a recession. Thus transfer payments such as unemployment compensation increase during a recession (since output has contracted) and government spending increases.


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