Government Spending Is Often Used To

question 95

Multiple Choice

Government spending is often used to:

• A) change interest rates, which in turn alters consumption and investment.
• B) increase demand in a recession.
• C) decrease demand in a recession.
• D) target inflation.

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Definitions:

Accounts Payable

Liability accounts listing the amounts a company owes to suppliers for goods or services received on credit.

Salaries Payable

A liability account representing the amount of wages owed to employees for work performed but not yet paid.

Liability Account

A financial accounting term representing the debts or obligations of a company incurred during business operations.

Asset Account

An account on a company's balance sheet that represents the value of all assets that the company owns.