Monetarists and Keynesians

question 95

Multiple Choice

Monetarists and Keynesians

• A) disagree on the speed at which wages change.
• B) agree on the impact of fiscal policy on the economy.
• C) disagree on how the Fed changes money supply.
• D) agree on the usefulness of discretionary policy.

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Definitions:

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodical basis rather than transaction by transaction.

Net Method

An accounting practice where purchase discounts are recorded immediately by reducing the price of the goods bought, assuming the discount will be taken.

Journal Entries

The records of financial transactions in the accounting system, documented in chronological order.

Voucher

A document that serves as evidence for a transaction and authorizes the payment or receipt of money.