A Change in Equilibrium in One Market That Affects Other

question 46

Multiple Choice

A change in equilibrium in one market that affects other markets is called:

• A)a multiplier effect.
• B)an external effect.
• C)a spillover effect.
• D)a lagged exchange effect.

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Definitions:

Accounting Data

Accounting data encompasses all the financial information and records of a business’s transactions, including sales, purchases, expenses, and revenues.

Reporting Entity Concept

An accounting principle that identifies the entity for which financial statements are prepared, distinct from its owners, managers, or other entities.

Business Organizations

Various legal structures used by entities to conduct business, including sole proprietorships, partnerships, corporations, and cooperatives, each with distinct rules, liabilities, and taxation policies.