"If Congress Cuts Income Taxes, Demand for Output Is Likely

question 105

Multiple Choice

"If Congress cuts income taxes, demand for output is likely to increase" is a ________ statement about ________ policy.

• A)positive; fiscal
• B)normative; fiscal
• C)positive; monetary
• D)normative; monetary

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Definitions:

Year 2

A reference to the second year of a company's operations, project timeframe, or any specific period's second year.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell the products, and collect cash from the sales.

Year 2

Typically refers to the second year in a given context, such as the fiscal year, a multi-year plan, or period analysis.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by extending credit.