Which One of the Following Is an Example of Discretionary

question 228

Multiple Choice

Which one of the following is an example of discretionary fiscal policy used to correct an inflationary gap?

• A) a tax increase passed into law by Congress
• B) decrease in the money supply by the Federal Reserve
• C) an increase in government expenditures approved by Congress
• D) an agreement among major banks to lower interest rates

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Definitions:

Net Operating Income

The income generated from a company's core business operations, excluding expenses such as interest and taxes.

Operations

Tasks associated with the daily operations of a company aimed at generating value for stakeholders.

Absorption Costing

A cost accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads - in the cost of a unit of product.

Gross Margin

The difference between the revenue generated from sales and the cost of goods sold, representing the profit made before accounting for operating expenses.