In 2010, in Order to Stimulate Capital Investment, President Obama

question 183

Multiple Choice

In 2010, in order to stimulate capital investment, President Obama proposed

• A)a reduction in real interest rates.
• B)an increase in the money supply.
• C)increased write-offs for businesses purchasing equipment.
• D)an increase in the tax on capital gains.

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Definitions:

Straight-Line Depreciation

A technique for distributing the expense of an asset uniformly over its lifespan.

Depreciable Cost

The total amount that can be depreciated over the life of an asset, typically the cost of an asset minus its salvage value.

Straight-Line Depreciation

A process for determining depreciation by uniformly distributing an asset's cost across its lifespan.

Residual Value

Residual value is the estimated value of an asset at the end of its useful life, reflecting what it could be sold for or its scrap value.