An Autonomous Increase in Money Demand,other Things Equal,shifts the ________

question 1

Multiple Choice

An autonomous increase in money demand,other things equal,shifts the ________ curve to the ________.

• A)IS;right
• B)IS;left
• C)LM;left
• D)LM;right

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Definitions:

Indirect Method

A technique used in cash flow statements where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Operating Activities

Actions related to the day-to-day functions of a business that directly affect its cash inflows and outflows, such as sales, purchase of inventory, and payment of salaries.

Cash Dividends

Cash dividends refer to the distribution of profits made by a company to its shareholders in the form of cash.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.