To Determine the Amount of Additional Funds Needed (AFN), You

question 2

True/False

To determine the amount of additional funds needed (AFN), you may subtract the expected increase in liabilities, which represents a source of funds, from the sum of the expected increases in retained earnings and assets, both of which are uses of funds.

---

Definitions:

Higher Incomes

Increased earnings of individuals, households, or nations, typically leading to more disposable income and consumption.

Growth Of Income

An increase in the amount of money received by an individual, group, or country over a period of time.

Economy's Potential

Refers to the maximum sustainable level of output an economy can produce, taking into account its resources and technology.