What Is the Effect When There Is an Equal and Simultaneous

question 10

Multiple Choice

What is the effect when there is an equal and simultaneous decrease in G and T ?

• A) A decrease in investment.
• B) No change in output.
• C) A decrease in output.
• D) An increase in investment.
• E) An increase in output.

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Definitions:

Canadian Dollars

Canadian dollars (CAD) refer to the official currency of Canada, which is used for all transactions within the country.

Translation Gain/Loss

The gain or loss resulting from the conversion of foreign currency amounts into the functional currency of a business during the consolidation of financial statements.

Functional Currency

The currency of the primary economic environment in which a company operates, typically used in reporting its financial statements.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value.