-In the Long Run,an Increase in the Quantity of Money

question 152

Multiple Choice

-In the long run,an increase in the quantity of money ________ the value of money and ________ the price level.

• A)lowers;lowers
• B)raises;raises
• C)lowers;raises
• D)raises;does not change
• E)lowers;does not change

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Revenue

The aggregate revenue from selling goods or services, which constitute a firm's central business functions.

Expense Accounts

Accounts used to record the consumption of assets or services that result in a decrease in owner's equity, excluding the withdrawal of business assets by the owner.

Income Summary Account

A temporary accounting ledger that aggregates all income and expenses over a period to calculate net profit or loss.