If the Central Bank Targets Interest Rates,then the LM Curve

question 42

Multiple Choice

If the central bank targets interest rates,then the LM curve is

• A)vertical.
• B)horizontal.
• C)upward sloping.
• D)downward sloping.

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Definitions:

Short-Term Notes Payable

Liabilities representing amounts borrowed that are expected to be repaid within one year or one operating cycle, whichever is longer.

Accruals

Accounting method where revenue and expenses are recorded when earned or incurred, regardless of when the cash transaction occurs.

Quick Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Accounts Receivable

Accounts receivable are amounts owed to a business by its customers for goods or services delivered but not yet paid for.