The Economy Goes into Recession

question 31

Multiple Choice

The economy goes into recession.Which of the following lists contains things policymakers could do to try to end the recession?

• A)increase the money supply,increase taxes,increase government spending
• B)increase the money supply,increase taxes,decrease government spending
• C)increase the money supply,decrease taxes,increase government spending
• D)decrease the money supply,increase taxes,decrease government spending

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Definitions:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.

Equity

The value of an owner's interest in a property or business, determined by subtracting liabilities from assets.

Trading Securities

Marketable securities held by a firm with the intent of short-term trading for profit, which are classified as current assets on the balance sheet.

Accounting Principles

The foundational concepts and guidelines that govern the field of accounting, such as revenue recognition, matching principle, and full disclosure.