A Contractionary Monetary Policy Shifts the LM Curve to the ________,Reducing

question 49

Multiple Choice

A contractionary monetary policy shifts the LM curve to the ________,reducing ________,everything else held constant.

• A)left;output and increasing interest rates
• B)left;both real output and interest rates
• C)right;both interest rates and real output
• D)right;interest rates and increasing real output

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Definitions:

Earnings Per Share

A measure of a company's profitability calculated by dividing net income by the number of outstanding shares.

Comprehensive Income

This is a measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.

Accrual-Based Sales Revenue

Revenue recognized when earned, regardless of when the payment is received, following the accrual basis of accounting.

Ending Inventory

The worth of merchandise ready for sale when an accounting period concludes, determined by adding beginning inventory and purchases, then subtracting the cost of goods sold.