The Model Predicts a Permanent Decrease in Government Purchases Causes

question 42

Multiple Choice

The model predicts a permanent decrease in government purchases causes:

• A)an increase consumption.
• B)an increases the real interest rate.
• C)an increases real GDP.
• D)all of the above.

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Definitions:

Ledger

A comprehensive collection of a company's accounts where transactions are recorded, typically categorized into assets, liabilities, equity, revenues, and expenses.

Compound Journal Entry

A journal entry that includes multiple debits, credits, or both, affecting more than two accounts.

Accounts

Records of financial transactions pertaining to specific assets, liabilities, equity, revenues, and expenses within an organization.

Compound Entry

A type of journal entry in accounting that involves more than two accounts, with multiple debits, credits, or both.