Which of the Following Cannot Stabilise a Booming Economy

question 38

Multiple Choice

Which of the following cannot stabilise a booming economy?

• A)reducing the interest rate
• B)raising the inflation target
• C)reducing government purchases
• D)raising the income tax rate

---

Definitions:

Profit Margin

A financial indicator that calculates how much net profit is generated for every dollar of sales by examining the relationship between a company's net income and its revenue.

Projected Addition

An estimate of future increases or expansions in inventory, assets, or capacity planned by a firm.

Current Ratio

The Current Ratio is a liquidity metric that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Notes Payable

Financial obligations represented by formal written agreements to pay a specific sum of money at a future date.