Which of the Following Is an Example of a Contractionary

question 181

Multiple Choice

Which of the following is an example of a contractionary fiscal policy?

• A) the Fed buying government securities in the open market
• B) the federal government decreasing the marginal tax rate on incomes below $200,000
• C) the federal government decreasing the amount of money spent on public health programs
• D) the federal government reducing pollution standards to allow firms to produce more output

Recognize and differentiate between capital budgeting methods that consider and do not consider the time value of money.

Understand the definition and role of relevant costs in decision-making.

Identify and differentiate between types of costs and their relevance to managerial decisions.

Elucidate on the importance of forecasting future cash outlays in the context of relevant costs.

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Definitions:

Visibility

The awareness of others regarding your presence in an organization.

Underlying Norms

Fundamental, often unspoken rules that govern behavior within a group or society.

Political Situation

A scenario characterized by the distribution of power and authority among individuals or groups and the dynamics of political actions and decisions.

Cognitive Dissonance

The inconsistency between a person’s beliefs, attitudes or behaviors.