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Match the Term with the Definition

question 50

Multiple Choice

Match the term with the definition.
-Economic theory that claims tax cuts for individuals (especially the wealthy) and businesses encourage investment and production (supply) and stimulates consumption (demand) because individuals can keep more of their earnings.Despite promises to the contrary,under President Reagan this theory created a massive federal budget deficit.


Definitions:

Subsidiary Profits

Earnings generated by a subsidiary that contribute to the income and financial standing of its parent company.

Fair Value

Refers to the estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Issued Capital

The total value of a company's shares that have been sold to shareholders.

Tax Rate

is the percentage at which an individual or corporation is taxed by the government.

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