Imagine Two Economies That Are Identical Except That for a Long

question 126

Multiple Choice

Imagine two economies that are identical except that for a long time,economy A has had a money supply of $500 billion while economy B has had a money supply of $1,000 billion.It follows that

• A)real GDP and the price level are higher in country B.
• B)real GDP, but not the price level, is higher in country B.
• C)the price level, but not real GDP is higher in country B.
• D)neither the price level nor real GDP is higher in country B.

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Definitions:

Budgeted Cash Receipts

An estimate of all cash inflows a company expects to receive during a particular period based on expected sales or other income sources.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of materials and labor but not distribution or sales costs.