If There Was a Decrease in National Income Then, Other

question 69

Multiple Choice

If there was a decrease in national income then, other things constant, _____.

• A) there would be a rise in the equilibrium interest rate
• B) there would be a fall in the equilibrium interest rate
• C) there would be an increase in real money balances
• D) there would be a decrease in real money balances

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Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services sold on credit.

Accounts Payable Balance

The total amount owed by a company to its suppliers or creditors for items or services purchased on credit.

Raw Materials Purchases

The total cost or expenditure associated with buying raw materials that will be used in producing goods.