Which One of the Following Statements Is NOT True

question 115

Multiple Choice

Which one of the following statements is NOT true?

• A)Expansionary fiscal policy is employed to offset recessionary gaps.
• B)Expansionary fiscal policy has an effect on interest rates.
• C)Crowding out dilutes the effect of expansionary fiscal policy.
• D)When crowding out occurs, fiscal policy is more effective.

---

Definitions:

Capital Expenditures Budget

A budget allocation for the planned spending on long-term assets, such as buildings, machinery, and equipment, intending to enhance the capacity or efficiency of the business.

Top-Down Managerial Approach

This approach in management involves decision-making and directive processes originating from the upper echelons of the organization hierarchy and flowing downward.

Budget Preparation

The process of estimating future financial performance and resource requirements, forming the basis of a financial plan.

Sales Budget

An estimate of the expected total sales revenue and the necessary selling expenses for a specific period, often broken down by product line or category.