Figure 21-2

question 375

Multiple Choice

Figure 21-2. On the left-hand graph, MS represents the supply of money and MD represents the demand for money; on the right-hand graph, AD represents aggregate demand. The usual quantities are measured along the axes of both graphs.
-Refer to Figure 21-2. A decrease in Y from Y₁ to Y₂ is explained as follows:

• A)The Federal Reserve increases the money supply, causing the money-demand curve to shift from MD₁ to MD₂; this shift of MD causes r to increase from r₁ to r₂; and this increase in r causes Y to decrease from Y₁ to Y₂.
• B)An increase in P from P₁ to P₂ causes the money-demand curve to shift from MD₁ to MD₂; this shift of MD causes r to increase from r₁ to r₂; and this increase in r causes Y to decrease from Y₁ to Y₂.
• C)A decrease in P from P₂ to P₁ causes the money-demand curve to shift from MD₁ to MD₂; this shift of MD causes r to increase from r₁ to r₂; and this increase in r causes Y to decrease from Y₁ to Y₂.
• D)An increase in the price level causes the money-demand curve to shift from MD₂ to MD₁; this shift of MD causes r to decrease from r₂ to r₁; and this decrease in r causes Y to decrease from Y₁ to Y₂.

Execute proper journal entries for the initial recognition of finance and operating leases by lessors.

Recognize how initial direct costs are handled in operating leases.

Understand the classification and accounting treatment of finance leases vs. operating leases.

Appreciate the significance of fair value measurement at the inception of a lease.

---

Definitions:

Speech Transitions

Phrases or words used to smoothly move from one point or idea to another in a speech or presentation.

Enunciating Words

The act of pronouncing words clearly and distinctly, ensuring understanding by the listener.

Economic Forum

An event or organization focused on the discussion and analysis of economic issues and policies by experts and leaders.

Visual Aids

Tools that employ visual elements, such as images, diagrams, or videos, to enhance understanding or retention of information.