The Steeper Is the IS Curve

question 45

Multiple Choice

The steeper is the IS curve,

• A)the more effective is monetary policy.
• B)the less effective is monetary policy.
• C)the effectiveness of monetary policy does not change.
• D)a given change in the money supply will have a greater effect on output.

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Definitions:

GAAP

A set of widely adhered to accounting norms and standards utilized for financial reporting, known as Generally Accepted Accounting Principles.

Capital Lease

A lease agreement that grants a lessee the rights similar to ownership of the asset, typically for a considerable period of the asset's life.

Operating Lease

A leasing agreement allowing the use of an asset without ownership, typically with shorter terms than a finance lease.

FASB/IASB Exposure Draft

A draft report proposed by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) for public comment on proposed changes to accounting standards.