Figure 36-9 ​ ​

question 3

Multiple Choice

Figure 36-9
​ ​
-Figure 36-9 shows aggregate expenditures when net exports are fixed and aggregate expenditures are variable.The autonomous spending multiplier is

• A)smaller when net exports are fixed.
• B)smaller when net exports are variable.
• C)larger when net exports are variable.
• D)the same whether net exports are fixed or variable.

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Definitions:

Terms of Sale

The conditions under which a seller will complete a sale, typically specifying the time and method of payment and when the buyer takes possession of the goods.

Credit Period

The duration of time a buyer is given by a seller to pay for a purchase.

Cash Discount

An incentive offered by sellers to encourage buyers to pay their invoice ahead of the due date.

Discount Period

The time frame between the date a bill is issued and its payment date, within which payment may be made at a discount.