In a Closed Economy, If Y, C, and T Remained

question 404

Multiple Choice

In a closed economy, if Y, C, and T remained the same, an increase in G would reduce

• A)private saving and public saving.
• B)private saving but not public saving.
• C)public saving but not private saving.
• D)neither private nor public saving.

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Definitions:

Operating Activities

Operating activities involve the day-to-day functions of a business directly related to its provision of goods and services.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Cash Dividends

The distribution of profits by a corporation to its shareholders in the form of cash.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activities into operating, investing, and financing activities.