If a Budget Is Cyclically Balanced,the Government Should Run a Surplus

question 77

True/False

If a budget is cyclically balanced,the government should run a surplus when the economy experiences a contractionary gap.

Understand the rationale and methods for accelerating cash receipts from receivables.

Distinguish between different types of receivables and their associated instruments of credit.

Recognize the implications of selling receivables on a company's cash flow.

Calculate the maturity date of notes receivable.

---

Definitions:

Gross Income

The total income received before any deductions or taxes are applied.

Tax-exempt State Bonds

Bonds issued by state or local governments that offer investors the benefit of receiving interest payments that are exempt from federal income tax.

Gross Income

The total income from all sources before deductions, taxes, and expenses.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace, determined by supply and demand.