Which of the Following Assumptions Is True of Government Spending

question 75

Multiple Choice

Which of the following assumptions is true of government spending and taxes?

• A)They do not depend upon on the level of GDP.
• B)They may be changed only through direct action by the Congress.
• C)They change only when the price level changes.
• D)They change only upon executive order by the president of the United States.
• E)They are autonomous at low levels of GDP but not at higher levels of GDP.

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Definitions:

Proper Form

The required or correct format, arrangement, or procedure that a document, action, or process must adhere to according to rules, standards, or laws.

Closing

The process of finalizing accounts at the end of an accounting period to prepare them for the next period.

Post-closing Trial Balance

A list of all permanent accounts and their balances after closing entries are made, used to check the balance and prepare for the new accounting period.

Proper Form

Compliance with established rules and guidelines, ensuring correctness in structure or procedure.