Which of the Following Statements Is True

question 69

Multiple Choice

Which of the following statements is true?

• A)The open-economy IS curve is derived in the same way that the closed-economy IS curve is derived.
• B)The closed-economy IS curve is downward sloping,but the open-economy IS curve is upward sloping.
• C)Some factors that shift the IS curve in the closed economy in one direction will shift the IS curve in the open economy in the opposite direction.
• D)Factors that raise a country's current net exports,given domestic output and the domestic real interest rate,shift the open-economy IS curve up.

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Definitions:

Fringe Benefits

Additional compensation provided to employees beyond their normal wages, such as health insurance, retirement plans, and company cars.

Factory Labor Costs

The total expense incurred by a company to pay wages to manufacturing or factory workers directly engaged in producing the goods or services.

Control Account

An account in the general ledger that summarizes subsidiary ledger data.

Control Account

A summary account in the general ledger that consolidates the total amounts recorded in subsidiary ledgers.