During a Recession,Keynesians Are in Favor of Tax Cuts or Spending

question 131

True/False

During a recession,Keynesians are in favor of tax cuts or spending increases to stimulate the economy and start the multiplier process.

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Definitions:

Investment Opportunity

Any vehicle through which funds can be invested to potentially earn a return, such as stocks, bonds, real estate, or a business venture.

Minimum Required Rate

Often refers to the minimum rate of return that an investment must offer to be considered viable or the minimum acceptable compensation for delay or risk.

Revenue Variance

The difference between how much the revenue should have been, given the actual level of activity, and the actual revenue for the period. A favorable (unfavorable) revenue variance occurs because the revenue is higher (lower) than expected, given the actual level of activity for the period.

Activity Measure

An allocation base in an activity-based costing system; ideally, a measure of whatever causes the costs in an activity cost pool.