Economic Policies That Attempt to Benefit the Poor Through Taxing

question 25

Multiple Choice

Economic policies that attempt to benefit the poor through taxing and spending are referred to as

• A)redistributive programs.
• B)unfunded mandates.
• C)general revenue sharing.
• D)formula grants.

---

Definitions:

Cash Flow

The combined value of financial transactions into and out of an enterprise, crucially affecting its cash reserves.

Present Value

is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Discount Rate

The rate of interest utilized to calculate the current value of future cash flows in a discounted cash flow assessment.

Incremental Net Income

The additional net income that results from a specific business decision compared to an alternative.