Which of the Following Is an Example of the Timing

question 15

Multiple Choice

Which of the following is an example of the timing strategy?

• A)A cash-basis taxpayer paying all outstanding bills by year-end.
• B)A parent employing her child in the family business.
• C)A business paying its owner a $30,000 salary.
• D)A taxpayer investing in a tax-preferred investment.
• E)None of the choices are correct.

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Definitions:

Federal Deficits

The financial shortfall that occurs when a government's expenditures exceed its revenues in a given fiscal year.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by devastating economic contraction, high unemployment, and deflation.

Welfare Outlays

Expenditures made by governments aimed at supporting the wellbeing of citizens, including benefits for the unemployed, poor, disabled and elderly.

Discretionary Fiscal Policy

Government policy actions, through spending or taxation, aimed at influencing economic conditions based on current economic assessments.