Based on Our Understanding of the IS-LM Model That Takes

question 49

Multiple Choice

Based on our understanding of the IS-LM model that takes into account dynamics,we know that an increase in the money supply will cause

• A)an immediate increase in i and no initial change in Y.
• B)an immediate decrease in i and no initial change in Y.
• C)a gradual decrease in i and gradual increase in Y.
• D)none of the above

---

Definitions:

Units-Of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or hours it is used.

Salvage Value

An asset's projected financial value at the end of its viability period.

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life, representing the asset's consumption, wear and tear, or obsolescence.

Straight-Line Method

The straight-line method is a depreciation technique that allocates an equal amount of depreciation expense for a fixed asset to each year of its useful life.