Which of the Following Is a Positive Statement

question 6

Multiple Choice

Which of the following is a positive statement?

• A)When the price of a good goes up,consumers buy less of it.
• B)When the price of a good goes up,firms produce more of it.
• C)When the Federal government sells bonds,interest rates rise and private investment is reduced.
• D)all of the above
• E)none of the above

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Definitions:

Ending Capital Balance

The amount of money that a company or individual has in their capital account at the end of a fiscal period, after all transactions have been accounted for.

Net Purchases

The total amount of purchases after subtracting any purchases returns, allowances, and discounts.

Withdrawal Account

An account in a partnership or sole proprietorship that records the amounts taken out of the business by the owner for personal use.