According to the Traditional View, If Taxes Are Cut Without

question 2

Multiple Choice

According to the traditional view, if taxes are cut without cutting government spending, then the international effect initially will be a capital and a trade .

• A)inflow; deficit
• B)inflow; surplus
• C)outflow; deficit
• D)outflow; surplus

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Definitions:

Compound Entry

A type of journal entry in accounting that involves more than two accounts, with multiple debits, credits, or both.

Journalizing

The process of recording business transactions in the journal of accounting as part of the double-entry bookkeeping system.

Simple Entry

A journal entry that involves only two accounts.

Chart of Accounts

An organized list of all the accounts in a company’s general ledger used for recording financial transactions.