The Policy Irrelevance Proposition Suggests That the Policy Effects on the Economy

question 171

Multiple Choice

The policy irrelevance proposition suggests that the policy effects on the economy primarily occur as a result of

• A)fiscal policy measures.
• B)policy mistakes or misjudgment of policies.
• C)nondiscretionary fiscal policy, not discretionary fiscal policy.
• D)fluctuations in the value of the U.S. dollar.

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Definitions:

Vitamin

Organic substance that is essential for normal body growth and maintenance and resistance to infection.

Closing Entries

At the close of an accounting period, recordings are made to move balances from temporary accounts to those that are permanent.

Adjustment Columns

Special columns found in accounting ledgers and worksheets used for making necessary modifications to accounts at the end of a reporting period.

Depreciation Expense

The cost allocated over the useful life of a tangible asset to account for its decline in value due to use and time.