Cash Flow from Operating Activities Was

question 3

Multiple Choice

Cash flow from operating activities was?

• A) $343,000
• B) $353,000
• C) $383,000
• D) $393,000

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero; it represents the expenditures that consumers must make even when they have no income.

Induced Consumption

Consumer spending that increases when income increases, and decreases when income decreases, reflecting behavioral responses to changes in income.

Disposable Income

The amount of money left for households to use on saving and spending after income taxes are covered.

Savings Rate

The proportion of disposable income that is saved rather than spent by individuals or households.