Which of the Following Best Explains What Will Happen If

question 22

Multiple Choice

Which of the following best explains what will happen if the government purchases share of GDP falls?

• A)The net export share of GDP will fall with it.
• B)The consumption share of GDP will fall with it.
• C)The investment, consumption, and/or net export share of GDP will rise.
• D)The investment share of GDP will fall with it.
• E)It is not clear whether any of the other shares will change since we don't know what happens to GDP.

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Definitions:

Reconciled Cash Balance

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to ensure accuracy.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those shown on a bank statement to ensure they are consistent.

Bank Service Charge

Fees charged by a bank to a customer for account services provided.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.