Figure 16-4 -Refer to the Figure 16-4.If the Economy Is at Point

question 59

Multiple Choice

Figure 16-4
-Refer to the Figure 16-4.If the economy is at point a and the Bank of Canada pursues an expansionary monetary policy,then the economy will move to which point in the short and long run?

• A) point a in the short run and point b in the long run
• B) point b in the short run and point a in the long run
• C) point b in the short run and point c in the long run
• D) point m in the short run and point h in the long run

---

Definitions:

Discount Period

A specified time frame during which a discount is offered or can be taken advantage of.

Credit Terms

The conditions under which credit is extended by a seller to a buyer, including the repayment period, discount for early payment, and the due date.

Invoice Price

The amount that appears on an invoice as the cost of buying or procuring a product or service.

Credit Terms

The conditions under which a seller will extend credit to a buyer, specifying the repayment period, interest rate, and consequences of late payment.