Effects of Transactions Upon Analytical Measurements

question 123

Essay

Effects of transactions upon analytical measurements
Determine the immediate effect of each of the transactions described below on the ratio listed beside each transaction.In the blank space to the left of each statement,you are to indicate the effect by writing the appropriate code letter.The code letters are as follows: I = increase the ratio,D = decrease the ratio,and NE = no effect on this ratio.

---

Definitions:

Fiscal Policy

Government policies related to taxation and spending to influence the economy, including measures to adjust the level of aggregate demand in the pursuit of economic objectives.

Vice-President

An official or executive ranking below the president of a country or a company, often with delegated duties or powers and serving as a successor in case the president cannot serve.

Automatic Stabilizers

Economic policies and programs designed to balance fluctuations in a nation's economic activity without additional intervention, such as unemployment benefits and progressive taxes.

Economic Stimulus

Governmental measures intended to encourage economic growth or avoid economic slowdowns, typically involving increased public spending and tax reductions.