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NEW QUESTION: 1
Measurement of a company's liquidity includes the calculation of all of the following EXCEPT:
A. quick ratio.
B. current ratio.
C. cash turnover.
D. return on equity.
Answer: D
NEW QUESTION: 2
A. Option C
B. Option E
C. Option D
D. Option B
E. Option A
Answer: A,E
NEW QUESTION: 3
A country's budget for year 2009 was -$20 billion (deficit) and the GDP for the year was $200 billion.
For year 2010 the budget was -$25 billion (deficit) and the GDP was $300 billion. This indicates that the country's fiscal policy is shifting towards:
A. Expansion since its budget deficit increased by $5 billion, or 25%.
B. Restriction since its budget deficit increased by 25%, but the GDP increased by 50%.
C. Expansion since its budget in year 2010 was negative, indicating more spending than revenues.
Answer: B
Explanation:
To determine if the fiscal policy is shifting toward expansion or restriction, economists use changes in the size of the deficit or surplus relative to GDP, not the absolute amount of a deficit or surplus.
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