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Which of the Following Is TRUE

Question 34

Multiple Choice

Which of the following is TRUE?


A) Cash accounting is easier to implement in practice than is capital accounting.
B) Capital accounting is easier to implement in practice than is cash accounting.
C) Spending $1 billion on highways would change the capital account balance but not the cash account balance.
D) Spending $1 billion on unemployment benefits would change the capital account balance but not the cash account balance.

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