An Example of a Discretionary Fiscal Policy Is When

question 71

Multiple Choice

An example of a discretionary fiscal policy is when

• A)the government passes a law that raises personal marginal tax rates.
• B)tax receipts fall as incomes fall.
• C)unemployment compensation payments rise with unemployment rates.
• D)All of the above answers are correct.

Evaluate the financial performance through budgeted net income and cash flow statements.

Understand the concepts and methodologies for preparing a master budget.

Calculate and interpret budgeted sales, cash collections, and accounts receivable balances.

Develop a production budget, including required unit production to meet sales and inventory goals.

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Definitions:

Inventory

Goods or materials that a business holds for the purpose of selling them or turning them into products for sale.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income levels or financial transactions.

Non-controlling Interest

The portion of equity in a subsidiary not owned by the parent company, reflecting the interest of minority shareholders.

Subsidiary

A company controlled by another company, often referred to as the parent company.