In the Short-Run Macro Model,which of the Following Increases When

question 66

Multiple Choice

In the short-run macro model,which of the following increases when government spending increases?

• A) The interest rate
• B) Investment spending
• C) Taxes
• D) Spending on consumer durables
• E) The money supply.

---

Definitions:

Allowance Method

An accounting technique used to estimate and account for doubtful accounts, where some receivables will not be collected.

Uncollectible Accounts

Financial accounts receivable that are deemed unlikely to be collected, leading to their categorization as bad debts.

Year-end Adjustment

Adjustments made to the books of accounts at the end of a fiscal year to reflect accurate financial information.

Uncollectible Account

Accounts receivable that cannot be collected from customers, often considered as bad debt.