Which of the Following Is Correct

question 9

Multiple Choice

Which of the following is correct?

• A)The Fed can control the money supply precisely.
• B)The amount of money in the economy does not depend on the behavior of depositors.
• C)The amount of money in the economy depends in part on the behavior of banks.
• D)None of the above is correct.

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Definitions:

Tax Rate

The chunk of income designated by the government to be taken as tax from corporations or the public.

CCA Rate

Capital Cost Allowance rate, which is the percentage rate at which Canadian businesses can claim depreciation on assets for tax purposes.

Operating Cash Flow

The amount of cash generated by a company's regular business operations, indicating its ability to pay bills and fund operations.

Depreciation

A method to allocate a portion of the original cost of an asset to expense over its expected useful life to reflect its decreasing value.