Which of the Following Statements About Time Lags and Fiscal

question 110

Multiple Choice

Which of the following statements about time lags and fiscal policy is the most accurate?

• A)Changes in fiscal policy that involves changes in government spending on public works projects do not involve significant time lags.
• B)Changes in federal taxes can be implemented easily by the prime minister without the approval of Parliament.
• C)The lag time between when a fiscal policy is needed and when it is actually implemented is considerable.
• D)Once an appropriate fiscal policy has been determined, it can be implemented quickly.

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Definitions:

Net Income

This refers to the amount of money a company earns after subtracting all its expenses, taxes, and costs from its total revenue.

Ending Inventory Value

The total value of all the goods available for sale at the end of a financial period.

LIFO Periodic

An inventory accounting method where the last items purchased are the first ones used in costing inventory, applied at the end of the accounting period.

Inventory Value

The total cost or market value of all the goods and products held by a company intended for sale in the ordinary course of business.