If People Have a Sudden Increase in Confidence in the Open

question 2

Multiple Choice

If people have a sudden increase in confidence in the open economy of the U.S.and want to invest there,the:

• A)interest rate increases,as NCO increases.
• B)interest rate falls,as NCO falls.
• C)interest rate falls,as NCO increases.
• D)interest rate increases,as NCO decreases.

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Definitions:

Collecting Cash

The process of receiving cash, usually from customers, as payment for goods or services or as repayment of obligations.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting its liquidity.

Financial Statements

Summarized records of a company's financial activities over a specific period, including income statement, balance sheet, statement of cash flows, and statement of changes in equity.

Operating Activities

Operating activities involve the day-to-day functions of a business related to producing and selling its goods or services, reflected in the cash flows from operating activities in financial statements.