Figure 4-6 -In Figure 4-6 Above,with IS₀ Shifting to IS₁ Against the to IS₁

question 148

Multiple Choice

Figure 4-6

-In Figure 4-6 above,with IS₀ shifting to IS₁ against the upward-sloping LM curve,at point 1

• A)there is an excess demand for money.
• B)there is an excess supply of money.
• C)the demand for output exceeds Y₁.
• D)the demand for output is below Y₁.

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Definitions:

Indirect Method

A financial reporting approach where increases and decreases in inventory, accounts payable, and accounts receivable are reflected in cash from operating activities.

Operating Activities

Activities related to the day-to-day functioning of a business that are reflected in its cash flow from operations.

Net Income

The company's net income following the deduction of all costs and taxes from its total revenue.

Investing Activities

Transactions involving the acquisition or sale of long-term assets and investments, reflected in a company’s cash flow statement.