Answer:
a. neither the nominal nor the real interest rate rise.
Explanation:
Under Fisher's theory, if the nominal interest rate increases at a higher rate than the inflation rate, then the real interest rate rises. If the inflation rate increases more than the nominal interest rate, then the real interest rate decreases.
Generally, an increase in the money supply decreases the nominal interest rate and increases the inflation rate. That results in both lower nominal interest rates and lower real interest rates.
Answer:
E) General journal
Explanation:
The general journal is used to record all the accounting transactions carried out by a company. If the company uses an accounting tool software or a more complete ERP software, the transaction should be recorded immediately or as soon as possible.
For example, the journal record for this transaction should be:
- Dr Accounts Payable account 6,000
- Cr Cash account 6,000
Answer: magnifies spending-income changes into greater changes in aggregate demand, causing demand-pull inflation
Explanation:
The spending multiplier is the ratio of the change in GDP to the change in the autonomous expenditure.
The spending income multiplier magnifies spending-income changes into greater changes in aggregate demand, causing demand-pull inflation. In a situation whereby there's a reduction in the investment spending, there'll be a recession.
