In the Short Run,which of the Following Would Most Likely

question 28

Multiple Choice

In the short run,which of the following would most likely result from an increase in interest rates?

• A) a reduction in both equilibrium output and the price level
• B) an increase in the equilibrium price level and a reduction in equilibrium output
• C) a reduction in the equilibrium price level and an increase in equilibrium output
• D) an increase in both equilibrium GDP and the price level
• E) an increase in the equilibrium price level and no change in output

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Definitions:

Matching Concept

An accounting principle that dictates expenses should be matched with the revenues they help to generate within the same accounting period.

Clearinghouse Collection Fee

A charge levied by a clearinghouse for handling the processing and settlement of transactions between financial institutions.

Credit Card Sales

Transactions in which customers use credit cards to pay for goods or services, creating a receivable for the seller until payment is processed by the card issuer.

Summary Journal Entry

A consolidated record that summarizes multiple transactions into a single entry within the accounting records.