In Order to Maintain a Balanced Budget Every Year,during a Recession

question 67

Multiple Choice

In order to maintain a balanced budget every year,during a recession the government would have to

• A)Decrease the money supply.
• B)Increase the money supply.
• C)Decrease spending or increase taxes or both.
• D)Increase spending or decrease taxes or both.

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Definitions:

Operating Income

The amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Invested Assets

Resources such as securities and properties that an individual or organization allocates money into with the expectation of generating income or profit.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Return on Investment

A financial ratio that calculates the percentage gain or loss on an investment relative to the cost of the investment, indicating the efficiency of the investment.