A Change in Which of the Following Variables Will Cause

question 47

Multiple Choice

A change in which of the following variables will cause a shift of the IS curve in the current period?

• A) Current taxes.
• B) Current output.
• C) The current interest rate.
• D) All of the above.
• E) None of the above.

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Definitions:

IFRS 3

An International Financial Reporting Standard that outlines the accounting requirements for business combinations.

Entity Method

A consolidation method wherein investments in subsidiaries are reported at cost and income from the investment is recognized to the extent of dividends received.

Subsidiary

A company that is controlled by another company, typically through ownership of more than half of its voting stock.

Entity Method

An accounting approach where investments in subsidiaries are recorded at cost or in accordance with specific accounting standards, without consolidating the financial statements of the parent and subsidiary.