By Saying That the Equation of Exchange Is an Accounting

question 166

Multiple Choice

By saying that the equation of exchange is an accounting identity, we mean that

• A) it is useful for accountants, but not for economists.
• B) it identifies the key national income accounts.
• C) it is always true.
• D) it explains the effect of questionable accounting practices on macroeconomic performance.

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Definitions:

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A company engaged in the production of components used in the assembly or repair of automobiles.

Performance-Based Pay

A compensation strategy where employees' pay is based on their performance, often measured by predetermined goals or benchmarks.

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The United States Postal Service, an independent agency of the federal government responsible for providing postal service in the United States.

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