Which of the Following Is Correct

question 168

Multiple Choice

Which of the following is correct?

• A)Policy lags are normally much shorter for fiscal policy than for monetary policy.
• B)Congress usually makes major fiscal policy changes in a fairly short period of time.
• C)Expenditure lags are much longer for investment, the main way in which monetary policy affects aggregate demand.
• D)Monetary policy affects aggregate demand more quickly than fiscal policy, such as tax or government spending changes.

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Definitions:

Accounts Receivable-Year 2

The amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for in the second fiscal year.

Realized Gross Profit

The total profit a company makes from its sales after deducting the cost of goods sold, but only on transactions completed within the reporting period.

Deferred Gross Profit-Year 2

The portion of profit from installment sales recognized in the second year, not immediately at the time of sale, due to revenue recognition principles.

Cost Of Installment Goods Sold

The cost assigned to goods that have been sold on installment, including both the cost of manufacturing and a portion of interest on the installment sales.