For Fiscal Policymakers, One of the Results of an Independent

question 16

Multiple Choice

For fiscal policymakers, one of the results of an independent central bank is:

• A) to finance government spending the Treasury has to order more currency from the central bank.
• B) fiscal policymakers always have to borrow to increase spending.
• C) fiscal policymakers cannot borrow unless the Federal Reserve prints more money.
• D) increased government spending has to be financed with either higher taxes or increased government borrowing.

Compute and understand the impact of fixed and variable costs on profit.

Apply probability concepts in decision making under uncertainty.

Understand the theory of constraints and its application in process improvement.

Calculate the effective and design capacity of operations.

---

Definitions:

Ending Equity

The value of an owner's interest in a company at the end of an accounting period, calculated as total assets minus total liabilities.

Net Income

Refers to the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Dividends

Dividends are the portion of profit a company decides to distribute to its shareholders, often on a regular basis.

Equity

The value of an asset after deducting the cost of liabilities, representing the owner's interest in a company.