Comparing the Simple Keynesian Model with the IS-LM Model,in the IS-LM

question 38

Multiple Choice

Comparing the simple Keynesian model with the IS-LM model,in the IS-LM model

• A)the government spending multiplier is larger.
• B)the balanced budget multiplier is larger.
• C)the tax multiplier is smaller.
• D)there is no difference between any of the multipliers.

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Definitions:

Journal Amounts

Journal amounts represent the values recorded in a financial journal, depicting transactions in monetary terms for accounting purposes.

Ledger Accounts

Records that summarize all transactions related to a specific account within an accounting system.

Posting

The process of recording financial transactions in the ledger from the journal in accounting.

Journalized Transactions

The formal recording of financial transactions in the accounting journals as part of the double-entry bookkeeping system.