When the Economy Devotes More of Its Resources to Investment

question 80

True/False

When the economy devotes more of its resources to investment goods, it must devote fewer resources to consumer goods.

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Definitions:

Indirect Method

A method of computing the net cash provided by operating activities that starts with net income and adjusts it to a cash basis.

Net Cash

The amount of cash available after accounting for cash inflows and outflows.

Operating Activities

These activities generate cash inflows and outflows related to revenue and expense transactions that affect net income.

Investing Activity

Financial transactions related to the acquisition and disposal of long-term assets and investments not included in cash equivalents.