If an Economy's GDP Rises,then It Must Be the Case

question 12

Multiple Choice

If an economy's GDP rises,then it must be the case that the economy's

• A)income rises and saving falls.
• B)income and saving both rise.
• C)income rises and expenditure falls.
• D)income and expenditure both rise.

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Definitions:

Financing Activities

Transactions related to raising capital or repaying investors, including issuing equity, obtaining loans, and paying dividends.

Spreadsheet

A digital tool used for organizing, analyzing, and storing data in tabular form, consisting of rows and columns to facilitate calculations and management of information.

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts on the balance sheet.

Merchandise Inventories

Goods, either manufactured or purchased, held for sale in the regular course of business.