Which of the Following Is True

question 44

Multiple Choice

Which of the following is true ?

• A) Keynesians advocate increasing the money supply during economic recessions but decreasing the money supply during economic expansions.
• B) Monetarists advocate increasing the money supply by a constant rate year after year.
• C) Keynesians argue that the crowding-out effect is rather insignificant.
• D) Monetarists argue that the crowding-out effect is rather large.
• E) All of the above.

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Definitions:

Operating Cash Flow

The cash generated from a company's normal business operations, reflecting how much cash is generated from revenues after operating expenses.

Tax Rate

The specified percentage of incomes that the government earmarks for collection from individuals or corporations as taxes.

Net Income

The total earnings of a company after subtracting all expenses and taxes.

Retained Earnings

Profits that a company decides to keep or reinvest in the business after dividends have been paid out to shareholders, reflecting ongoing financial health and potential for growth.