If Government Purchases Change, Which Variable Is Fixed in the Short

question 137

Multiple Choice

If government purchases change, which variable is fixed in the short run as a result of the change?

• A)Saving
• B)All of these
• C)Consumption
• D)Net exports
• E)Inflation

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Definitions:

Purchase Discounts

Price reductions given by suppliers to buyers as an incentive for early payment of their purchase invoices.

Journalize

The process of recording business transactions in the journal, making note of the debit and credit of each transaction as per double-entry bookkeeping rules.

Inventory Valuation

The process of determining the monetary value of a company's inventory, using methods such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost.

Descriptive Statements

Statements that provide detailed explanations or descriptions of scenarios, processes, or items without making analytical judgments.