In Most Developing Countries, an Effective Fiscal Policy Is

question 123

Multiple Choice

In most developing countries, an effective fiscal policy is:

• A)easier to conduct than in developed economies, because there are fewer institutional checks and balances.
• B)easier to conduct than in developed economies, because politicians tend to be more socially-minded.
• C)harder to conduct, because taxes are difficult to collect.
• D)harder to conduct, because fiscal policy is discretionary in developing countries, unlike developed countries.

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Definitions:

Realized Capital Gains

The increase in value of an investment, when converted to cash.

Taxable Difference

The amount by which taxable income exceeds tax deductions in a given period, impacting the amount of tax owed.

Adjusted Cost

Adjusted cost refers to the modified cost of an investment, taking into account factors such as amortization, depreciation, or adjustments made for tax purposes.

UCC

Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions.