Answer: affect aggregate demand directly.
Explanation:
Monetarists believe that money supply is very important in determining the economic growth of an economy and this is why they advocate for monetary authorities to get involved in the monetary system in order to guide the growth of the economy.
To monetarists, the supply of money influences consumption as well as investment and so directly affects aggregate demand because both consumption and investment are components of aggregate demand. For instance, an increase in money supply increases both consumption and investment and so increases aggregate demand.
The practice of creating a liability when a company incurs an expense that cannot be directly linked to a specific accounting period most likely refers to companies may recognize such expenses in periods during which profits are high, as they can afford to take the hit to income, with a view to reducing the liability (the reserve) in future periods during which the company may struggle.
A liability is something that an individual or company owes, usually a monetary amount. Liabilities are settled over time by the transfer of economic benefits, including money, goods, or services.
Current liabilities are short-term financial obligations of a company that matures within one year or within the normal business cycle. The operating cycle, also known as the cash conversion cycle, is the time it takes a company to purchase inventory and convert sales into cash.
In general, mitigating the risk of legal liability requires acting lawfully and taking clear responsibility for the well-being of others (groups that include customers or clients, competitors, and the general public).
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