Use the Following Information to Answer Questions

question 111

Multiple Choice

Use the following information to answer questions
Green Thumb Garden Supplies reported the following information for 2015 and 2016.

-What is the current ratio for 2016?

• A)2.0:1
• B)1.7:1
• C)1.6:1
• D)0.6:1

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Definitions:

Fiscal Policy Measures

Actions by the government that include implementing taxes and allocating funds to impact economic conditions.

Inflationary Gap

The difference between the actual level of GDP and the potential GDP under full employment, indicating excess demand in the economy.

Government Spending

Total government expenditures on final goods and services, including salaries of public servants, public infrastructure, and other government activities.

Multiplier

A quantitative measure that indicates the proportional amount by which aggregate output is expected to increase following an injection of public spending or investment.