Which Policy Alternative Would Be an Appropriate Response to an Increase

question 91

Multiple Choice

Which policy alternative would be an appropriate response to an increase in investment demand by a government that wants to stabilize output?

• A) increasing taxes
• B) increasing the money supply
• C) increasing government expenditures
• D) increasing the government deficit

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Definitions:

Responsibility Centre

A business segment or department for which a manager has authority and responsibility for certain activities, performance, and outcomes.

Allocation Base

A criterion or standard used to distribute overhead costs among various cost objects, such as products or projects.

Reciprocal Services

Transactions in which services are exchanged between departments or units within an organization, often involving an allocation of costs.

Mutual Provision

The practice of supplying and receiving goods or services among a group or organizations, based on cooperative agreement rather than market competition.