Those Who Favor a Passive Approach to Policy Believe That

question 74

Multiple Choice

Those who favor a passive approach to policy believe that

• A)discretionary monetary policy can be used to help the economy since monetary policy lags are short
• B)discretionary fiscal policy can be used to help the economy since fiscal policy lags are short
• C)lags associated with implementing policies are too long and unstable for discretionary policy to be effective
• D)despite the lags involved,implementing discretionary policy is preferable to inaction
• E)none of the above

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Substantially Appreciated Inventory

Inventory items whose market value exceeds their basis significantly, affecting tax considerations during their sale or donation.

Unrealized Receivables

Amounts owed to a business for goods or services delivered but not yet paid for, which have not been recognized as income.

Ordinary Income

Income earned from normal business operations or employment, subject to regular income tax rates, excluding capital gains or dividends.

Service Partner

A business entity or individual that provides services to another company under a partnership or contractual agreement.