Contractionary Fiscal Policy May Have Some Undesirable Consequences

question 109

Multiple Choice

Contractionary fiscal policy may have some undesirable consequences.Among these is

• A)higher unemployment.
• B)higher inflation.
• C)higher net exports.
• D)larger federal deficits.

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Definitions:

Intra-Entity Transactions

Transactions that occur within the same legal entity, often between departments or divisions, which may require elimination during consolidation.

Net Income

The remaining profit for a company after deducting taxes and expenses from the revenue.

Consolidation Entry

A journal entry used in the preparation of consolidated financial statements to eliminate intercompany transactions and balances.