An important similarity between the keynesian model and the ad/as model is that:

a. in both models, prices change when there is a change in spending.

b. both models allow for government intervention in the short run.

c. both models predict that the economy will move towards full employment automatically.

d. in both models, the price level stays constant when there is a change in spending.

e. in both models real gdp stays constant when there is a change in spending.

Tara incorporates her sole proprietorship, transferring it to newly formed black corporation. the assets transferred have an adjusted basis of $240,000 and a fair market value of $300,000. also transferred was $10,000 in liabilities, $1,000 of which was personal and the balance of $9,000 being business related. in return for these transfers, tara receives all of the stock in black corporation. a. black corporation has a basis of $241,000 in the property. b. black corporation has a basis of $240,000 in the property. c. tara’s basis in the black corporation stock is $241,000. d. tara’s basis in the black corporation stock is $249,000. e. none of the above.

Which of the following statements about cash basis accounting is true? a. it is more complicated than accrual basis accounting. b. the irs allows all types of corporations to use it. c. it follows gaap standards. d. it ensures the company always knows how much cash flow it has.

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false