The composite index of leading indicators turns downward for three consecutive months. Economists reach agreement that the economy is moving into a recession. A tax cut is proposed in Parliament. The tax cut is passed by Parliament. Consumption spending begins to rise, aggregate demand increases, and the economy begins to recover. Refer to the above information. The operational lag of fiscal policy is reflected in what events?

Which of the following is true concerning the 5/5 lapse rule? a) the 5/5 lapse rule deems that a taxable gift has been made where a power to withdraw in excess of $5,000 or five percent of the trust assets is lapsed by the powerholder. b) the 5/5 lapse rule only comes into play with a single beneficiary trust. c) amounts that lapse under the 5/5 lapse rule qualify for the annual exclusion. d) gifts over the 5/5 lapse rule do not have to be disclosed on a gift tax return.