Considering Only Its Direct Effect on Income, Expansionary Fiscal Policy

question 66

Multiple Choice

Considering only its direct effect on income, expansionary fiscal policy tends to:

• A)decrease imports.
• B)increase exports.
• C)increase imports.
• D)decrease the trade deficit.

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Definitions:

Accounts Payable

Liabilities of a business that are due to vendors or suppliers for goods or services received that have not yet been paid for.

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a business.

Subsidiary Ledger

A ledger containing all the details of a general ledger account, allowing for more detailed information and analysis of that account.

Cash Receipts Journal

A specialized accounting journal used to record all cash inflow transactions.