Which of the Following Would Increase the Consumption Component of U.S

question 132

Multiple Choice

Which of the following would increase the consumption component of U.S. GDP?

• A)You purchase a bottle of California wine.
• B)A person in Paris purchases a bottle of California wine.
• C)A restaurant in Denver purchases a bottle of California wine to include on its wine list.
• D)The U.S. government buys a bottle of California wine to serve at a state dinner in the White House.

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Definitions:

Statement of Cash Flows

A financial document that provides a detailed analysis of a company's cash inflow and outflow over a certain period, showing how the company's cash position changes.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the business's operating cycle, whichever is longer.

Net Working Capital

The gap between a firm's current assets and its current liabilities, showcasing its operational effectiveness and short-term financial stability.

Current Liabilities

Obligations that a company needs to pay within a year.