If Interest Rates,prices,and Output Are All Rising,then According to the Keynesian

question 26

Multiple Choice

If interest rates,prices,and output are all rising,then according to the Keynesian model,these changes must be caused by

• A)an increase in aggregate supply.
• B)a shift to the right of the LM curve
• C)a shift to the right of the LM curve.
• D)a shift up in the IS curve.
• E)none of the above.

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Definitions:

Collection Delay

The time lag between when a payment is made by a customer and when the funds are available to the recipient.

Lockbox System

A service offered by banks to companies for the receipt of payment from customers, involving the collection of payments directly at a postal box and swiftly depositing them into the company's bank account.

Treasury Bills

Government-issued securities with maturity of up to a year, offered below their nominal value.

Collection Time

The duration it takes for a business to receive payments owed by its customers after a sale has been made.