In the Short Run

question 108

Multiple Choice

In the short run

• A) monetary expansion causes the CA to increase and fiscal expansion causes the CA to decrease.
• B) monetary expansion causes the CA to decrease and fiscal expansion causes the CA to decrease.
• C) monetary expansion causes the CA to increase and fiscal expansion causes the CA to increase.
• D) monetary expansion causes the CA to decrease and fiscal expansion causes the CA to increase.
• E) monetary expansion causes the CA to increase and the effects of fiscal expansion are ambiguous.

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Definitions:

Note Payable

A financial obligation or loan documented by a written promissory note specifying the principal amount, interest rate, and terms of repayment.

Liquidated

Refers to the process of settling debts by selling off assets.

Liquidation

The procedure of concluding a company's operations and allocating its resources among those who have claims.