Which of the Following Is a Recommended Strategy to Increase

question 98

Multiple Choice

Which of the following is a recommended strategy to increase productivity of the private sector?

• A) A reduction in government subsidies to producers
• B) An increase in business taxes
• C) An increase in government investment in risky projects
• D) An increase in the money supply
• E) An increase in subsidy on goods and services

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Definitions:

Retained Earnings

Profits that a company keeps or retains after paying dividends to shareholders, which are often reinvested in the business or used to pay down debt.

Accumulated Other Comprehensive Income

The cumulative effects of other comprehensive income items reported separately in the Stockholders’ Equity section of the balance sheet.

Long-Term Investments

Assets intended to be held for more than one fiscal year, including bonds, stocks, or real estate, aiming for future returns.

Reduce Expenses

A financial strategy aimed at decreasing costs to increase profitability.