Figure 10-2 ​

question 126

Multiple Choice

Figure 10-2
​
-One reason the oversimplified multiplier is incorrect is that inflation

• A)increases the multiplier by increasing investment spending.
• B)increases the multiplier by increasing consumer spending.
• C)decreases the multiplier by increasing net exports.
• D)decreases the multiplier by decreasing consumer spending.

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Definitions:

Accounts Receivable Control

A system or process used to manage and monitor amounts owed to a business by its customers for goods or services provided on credit.

Subsidiary Accounts

Ledger accounts that provide detailed information supporting summary-level entries in the general ledger and control accounts.

Special Journal

A type of accounting journal designated for recording a particular type of transaction in a more efficient manner.

Special Journals

Customized accounting journals used for recording and categorizing specific types of financial transactions.