Which of the Following Options Could Be Used to Eliminate

question 54

Multiple Choice

Which of the following options could be used to eliminate a recessionary gap?

• A) Increase government spending.
• B) Decrease government spending.
• C) Decrease investment.
• D) Increase taxes.

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Definitions:

Debt-to-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to fund a company's operations and growth.

Creditors

Individuals, businesses, or other entities that are owed money because they have provided goods, services, or loans to another entity.

Stockholders' Equity

The residual interest in the assets of a company after deducting liabilities, represented by the shareholders' investment and retained earnings.