The Lag Between the Time That Economic Stimulus Is Needed

question 8

Multiple Choice

The lag between the time that economic stimulus is needed and the time that a tax cut is passed by Congress is an example of a:

• A) fiscal inside lag.
• B) fiscal outside lag.
• C) monetary inside lag.
• D) monetary outside lag.

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Definitions:

Stockholders' Equity

The ownership interest of stockholders in a corporation, represented by the residual assets after deducting liabilities.

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders but instead reinvested in the core business or used to pay off debt.

Building Expansion

An increase in the physical size, capacity or significant improvement of a building facility.

Bond Repayments

The process of paying back the principal and interest on bonds, which are forms of long-term debt issued by corporations and governments.