Procedures

question 8

Multiple Choice

Procedures:

• A)prescribe how certain activities will be carried out.
• B)are broad guidelines used to assist lower level managers to handle recurring problems.
• C)assure that all budgets will be prepared using the same format.
• D)are global guidelines used to assist lower level managers to handle recurring problems.
• E)prescribe how certain activities will be carried out and assure that all budgets will be prepared using the same format.

---

Definitions:

Crowding-out Effect

A situation where increased government spending leads to a reduction in private sector investment, due to the government borrowing absorbing a larger share of available financial resources.

Expansionary Fiscal Policy

involves government spending and tax cuts to stimulate the economy during a recession.

Net Investment Spending

Represents the total amount spent on new capital assets minus the depreciation of existing assets, indicating how much a company is investing in its future growth.

Fiscal Policy

Government policies regarding taxation and spending to influence the economy.