A Tax Rebate,which Is Expected to Be Offered in This

question 61

Multiple Choice

A tax rebate,which is expected to be offered in this and all future years,will

• A)have a small positive effect on consumption and aggregate demand.
• B)have no effect on consumption and aggregate demand.
• C)have a significant positive effect on consumption and aggregate demand,with aggregate demand growing by a multiple of the tax rebate.
• D)increase aggregate supply and aggregate demand.

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Definitions:

Adjusting Entry

An entry made in the accounts to adjust revenues or expenses that have been accrued, deferred, or estimated.

Accrued Fees Earned

Revenues that have been earned by providing a service or product, but have not yet been received or invoiced to the client.

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period.

Notes Receivable

Written promises for amounts to be received, typically including interest, recorded by the recipient.