Which Policy Measure Can Help to Increase the Desired Capital

question 42

Multiple Choice

Which policy measure can help to increase the desired capital stock?

• A)higher investment tax credits
• B)a higher corporate income tax
• C)restrictive monetary policy
• D)an expansionary fiscal/restrictive monetary policy mix
• E)none of the above

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Definitions:

Temporary Account

Accounts that are closed at the end of each accounting period, including revenues, expenses, and withdrawals.

Unadjusted Trial Balance

A preliminary report of all accounts in the general ledger before any adjusting entries are made to ensure debits equal credits.

Adjustments

Journal entries made to correct or update accounting records and financial statements, often at the end of an accounting period.

Prepayment of Expenses

The payment for goods or services before they are received or consumed, often recorded as an asset on the balance sheet until used.