Which of the Following Statements Regarding the Role of the Federal

question 103

Multiple Choice

Which of the following statements regarding the role of the federal government in the economy is correct?

• A) Economic regulation of industry is the sole responsibility of the secretary of the treasury.
• B) Most Americans would prefer an economy completely free of any federal regulations.
• C) Since the Great Recession, the scope of federal activity in the economy has contracted.
• D) The U.S. Constitution restricts direct regulation of the economy to state governments.
• E) Presidential election outcomes are heavily influenced by the health of the economy.

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Definitions:

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash flow to recover the cost of the investment.

Salvage Value

The projected sum an asset is expected to fetch at the end of its service life.

Cost Savings

The reduction in costs achieved through efficiency improvements, strategic purchase, or avoiding unnecessary expenses.

CCA Class

In Canadian taxation, a classification system for capital assets that determines the rate at which they can be depreciated.