Suppose Aggregate Demand Fell

question 3

Multiple Choice

Suppose aggregate demand fell.In order to stabilize the economy,the government might

• A)decrease the money supply.
• B)decrease government expenditures.
• C)decrease taxes.
• D)do nothing.

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Definitions:

Account Receivable

Accounts Receivable are amounts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Write Off

An accounting action taken to recognize that an asset has lost its value and is removed from the balance sheet.

Cash

Money in the form of coins or banknotes, especially that used to operate a business on a day-to-day basis.

Prior Year Financial Statements

Reports that detail a company's financial performance in the previous fiscal year, including the income statement, balance sheet, and cash flow statement.