According to Aggregate Demand and Supply Analysis and with Everything

question 24

Multiple Choice

According to aggregate demand and supply analysis and with everything else held constant,a continuous increase in the money supply causes

• A)the price level to increase,but has no lasting effect on the inflation rate.
• B)the price level to fall.
• C)inflation.
• D)output to increase,but leaves the price level and inflation unchanged.

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Definitions:

Percent of Sales Method

A financial analysis technique used to forecast future expenses or account balances as a percentage of sales revenue.

Direct Write-off Method

An accounting method where uncollectible accounts receivable are written off directly against income at the time they are deemed noncollectible.

Uncollectible Receivables

Receivables considered uncollectible by a company and therefore recorded as a loss.

Journalize

The process of recording transactions in the general journal using the double-entry bookkeeping system.