The Most Important Component of the Economic Recovery Act Passed

question 17

Multiple Choice

The most important component of the Economic Recovery Act passed by the Bush Administration was ________.

• A)the creation of the Federal Reserve discount window
• B)the establishment of the Troubled Asset Relief Program (TARP)
• C)the decrease in taxes for the wealthiest one percent of all Americans
• D)the creation of the Federal Reserve

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Definitions:

Interest Burden

The ratio indicating the proportion of a company's pre-tax earnings that are consumed by interest payments.

Profit Margin

A financial ratio that shows what percentage of sales has turned into profits, indicating the efficiency of a company's cost management.

Accounts Payable

Accounts payable are amounts a company owes its suppliers or creditors for goods or services received that have not yet been paid for.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.