An Example of Stimulus Spending by the Government Might Be

question 84

Multiple Choice

An example of stimulus spending by the government might be:

• A) increase in government purchases of new cars.
• B) the monthly payments a government agency makes to its employees.
• C) a cut in the government budget aimed at spurring private consumption.
• D) the FED engaging in open market sales of securities.

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Definitions:

Adjusting Entries

These are journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Expense Account

An account used to track expenditures or costs incurred by a business or an individual for operational purposes.

Asset Account

An account that tracks resources owned or controlled by a business or individual which have economic value.

Unearned Items

Income received for goods not yet delivered or services not yet provided, considered a liability until the goods or services are delivered.