Nonactivists Propose Doing Nothing in the Face of Economic Hardship

question 50

Multiple Choice

Nonactivists propose doing nothing in the face of economic hardship because ________.

• A)activist policies can kick in at the wrong time and be counterproductive
• B)"markets self-correct pretty rapidly anyway"
• C)in the face of high unemployment,activist policies would likely lead to surges in inflation
• D)all of the above
• E)none of the above

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Definitions:

Asset Account

An account recorded on the balance sheet that represents items of value owned by a company, such as cash, inventory, buildings, and equipment.

Straight-line Method

A method of calculating depreciation by uniformly distributing the cost of an asset minus its salvage value over its useful life.

Gain on Sale

The financial benefit that occurs when the selling price of an asset exceeds its original purchase price.

Loss on Sale

Loss on Sale occurs when the selling price of an asset is less than its carrying amount on the books, resulting in a financial loss.