"If We Come to a Company's Rescue This Time,they'll Take

question 8

Multiple Choice

"If we come to a company's rescue this time,they'll take more risks and we'll have to come to their rescue next time,too." The economist who said this most likely

• A) believes that the AS curve is upward-sloping.
• B) prefers monetary policy to fiscal policy when it comes to stabilizing the economy.
• C) is against bailouts.
• D) prefers increases in government spending to tax cuts when it comes to stimulating the economy from the demand side.
• E) none of the above

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Definitions:

Costing Method

An approach or procedure used to assign costs to products or services, including methods like job order costing, process costing, and activity-based costing.

Days In Inventory

A financial ratio indicating the average number of days a company takes to turn its inventory into sales, reflecting inventory management efficiency.

Inventory

The goods and materials a business holds for the ultimate goal of resale or processing.

Days In Inventory

A financial metric that indicates the average number of days a company holds inventory before it is sold, calculated by dividing inventory by cost of goods sold and multiplying by 365.