Which of the Following Is True

question 70

Multiple Choice

Which of the following is true?

• A)According to Minsky, in an extended recovery, the seeds of an eventual downturn are planted.
• B)A long term cycle of boom and bust has never happened in the U.S. economy.
• C)As spending units move from hedge to speculative to Ponzi units, their debt-income ratios fall.
• D)Minsky's financial instability hypothesis attempts to explain the short-term year to year gyrations in the economy.

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Definitions:

Variable Costing

A ledger maintaining technique that factors in only the variable costs incurred during production (direct materials, direct labor, and variable manufacturing overhead) into product pricing.

Absorption Costing

In this financial accounting strategy, the entirety of manufacturing expenses—encompassing direct materials, direct labor, and both variable and fixed overheads—are captured in the cost of a product.

Segmented Income Statement

An income statement broken down into segments or divisions of a company, showing financial performance for each separately.

Electronic Calculators

Electronic devices used for performing mathematical operations, ranging from basic to complex calculations.