If the Government Cuts Funding for Public Schools, It Is

question 70

Multiple Choice

If the government cuts funding for public schools, it is enacting:

• A) expansionary fiscal policy.
• B) contractionary fiscal policy.
• C) expansionary monetary policy.
• D) contractionary monetary policy.

---

Definitions:

Net Loss

The amount by which total expenses exceed total incomes for a business over a specific period, indicating a negative financial performance.

Net Income

The total earnings of a company after subtracting all costs and expenses, including taxes and interest, from its total revenues.

Balance Sheet Columns

The sections within a balance sheet that display a company's assets, liabilities, and shareholders' equity at a specific point in time.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.