According to the Passive Approach,discretionary Fiscal or Monetary Policy Can

question 48

True/False

According to the passive approach,discretionary fiscal or monetary policy can reduce the costs of an unstable economy.

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Definitions:

Operating Activities

Activities that relate directly to the principal revenue-generating activities of a business, such as sales and service provision.

Indirect Method

A method used in cash flow statements to adjust net income for non-cash transactions and changes in working capital to arrive at operating cash flow.

Cash Flows

The complete sum of cash flowing in and out of a company, particularly influencing its ability to cover immediate expenses.

Investments

Assets purchased with the expectation that they will generate income or appreciate in value over time.