The Time It Takes Congress to Propose and Pass a Plan

question 15

Multiple Choice

The time it takes Congress to propose and pass a plan for fiscal policy is called the:

• A) recognition lag.
• B) legislative lag.
• C) effectiveness lag.
• D) adjustment lag.

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Definitions:

Cash Flows

Cash flows refer to the total amount of money being transferred into and out of a business, especially as affecting liquidity.

Financing Activities

Transactions and events where cash is raised or repaid to investors and creditors, such as issuing shares or borrowing loans.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Treasury Stock

Shares that were issued by a company and then repurchased, reducing the amount of outstanding stock on the open market.