Which of the Following Are Not True with Respect to Flexible

question 8

Multiple Choice

Which of the following are not true with respect to flexible spending accounts?

• A) Contributions are made with after-tax dollars
• B) Contributions are made with before-tax dollars
• C) Contributions may be made by the employee
• D) Contributions may be made by the employer
• E) Contributions may be made by both the employee and the employer

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Definitions:

Rational Expectations Theory

A principle that asserts that outcomes will not systematically deviate from what people expected them to be, because individuals use all available information to make forecasts.

Fed

Short for the Federal Reserve System, it's the central banking system of the United States responsible for monetary policy.

Discretionary Fiscal

Fiscal policies involving government spending and taxation that are at the discretion of the government and are used to influence the economy.

Economic Stabilization

Actions by governments or central banks to maintain economic growth, control inflation, and reduce unemployment.