Government Spending,which Is Primarily Supported by the Government's Ability to Tax

question 4

Multiple Choice

Government spending,which is primarily supported by the government's ability to tax individuals and businesses,is called ____.

• A) Deficit spending
• B) Fiscal policy
• C) Monetary policy
• D) Gross domestic product
• E) Business cycle

---

Definitions:

Leverage Ratio

A financial metric indicating the level of debt relative to equity in a company's capital structure, used to assess the risk of investing in the company.

Acid-test Ratio

A financial metric used to evaluate a company's short-term liquidity, calculated by dividing liquid assets by current liabilities.

Financing Activities

Financial transactions that involve raising capital and repaying investors, such as issuing equity, securing loans, or paying dividends, which impact a company's cash flow.

Business Activities

Various processes and tasks undertaken by businesses, including operations, marketing, management, and financial transactions.