Which of the Following Was an Argument for Using Fiscal

question 120

Multiple Choice

Which of the following was an argument for using fiscal policy in situations like the Great Recession?

• A)Congress can act quickly.
• B)The size of a recessionary gap may require the use of both fiscal and monetary policy.
• C)Once the federal funds rate is reduced to zero, monetary policy is less effective.
• D)all of the above

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Definitions:

Direct Materials

Direct materials are the raw materials that are directly traceable and allocable to a finished product in the manufacturing process, directly impacting the cost of goods sold.

Production Costs

The total expense incurred in the manufacture of a product, including labor, materials, and overhead.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.

Net Profit

The remaining income after all expenses, taxes, and costs have been subtracted from total revenue.