The Two Major Policy Tools Available for Controlling Economic Activity

question 4

Multiple Choice

The two major policy tools available for controlling economic activity are ________.

• A)interest rate and taxing policies
• B)interest rate and credit policies
• C)monetary and fiscal policies
• D)tax and spending policies

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Definitions:

Accounts Payable

Amounts owed by a business to its suppliers or vendors for goods and services received but not yet paid for.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Account Balances

The amounts of money held in financial accounts at a specific point in time, reflecting the net result of all completed transactions.

Adjusted Trial Balance

A list of all accounts and their balances after making adjustments, used for preparing financial statements.