Everything Else Held Constant,aggregate Demand Increases When

question 86

Multiple Choice

Everything else held constant,aggregate demand increases when

• A)net exports decrease.
• B)taxes increase.
• C)planned investment spending increases.
• D)the money supply decreases.

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Definitions:

Accrued

Describes expenses or revenues that have been incurred but not yet recorded through a payment or receipt, reflecting in accounts payable or receivable.

Deferred

Refers to items or transactions that have been postponed or delayed to a future date.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid out, respectively.

Accrual Basis

A financial recording technique that documents income and costs at the time they are generated or incurred, without consideration of when the actual cash transaction occurs.