What Is the Reason That Stabilization Policies Do Not Have

question 59

Multiple Choice

What is the reason that stabilization policies do not have an immediate effect on an economy?

• A) Consumers are slow to catch up on spending.
• B) There is a time lag for policies to take effect.
• C) Imports come into the country too fast.
• D) Exports often are not shipped fast enough.

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Definitions:

Initial Direct Costs

Expenses directly associated with acquiring or initiating a lease, which can include commissions, legal fees, and other incremental costs.

Unearned Interest Revenue-Leases

Revenue recognized from leasing transactions which has been collected but not yet earned, typically because the service period has not been completed.

Sales-type Lease

A lease agreement in which the lessor effectively transfers ownership and all risks and rewards of the asset to the lessee, resulting in immediate profit recognition.

Guaranteed Residual Value

The pre-determined value at which a leased asset is guaranteed to be worth at the end of the lease term, important for lease agreements.