jcrewz3628
30.01.2020 •
Business
Which of the following groups of accounts have a normal debit balance
a) revenue, liabilities, and capital
b) assets, capital, and withdrawals
c) liabilities, expenses, and assets
d) assets, expenses and withdrawals
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Ответ:
A way to remember this is AWE. Assets, Withdrawals and Expenses all have normal debit balances
Ответ:
Option (C) is correct.
Explanation:
Correct option: A $50 billion decrease in government spending would be the most contractionary fiscal policy.
A. Increase the taxes by $40 billion is also a contractionary fiscal policy but it doesn't have a greater impact than decreasing the government spending by $50 billion.
B. It is an expansionary fiscal policy.
D. There are both expansionary fiscal policy by decreasing taxes by $10 billion and contractionary fiscal policy by decreasing government spending by $40 billion. But it doesn't have much impact as the option (C) is having.
Therefore, Option (C) is having the most contractionary fiscal policy.