Your Net Worth Can Change Even If Your Net Cash

question 111

True/False

Your net worth can change even if your net cash flows are zero.

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Definitions:

Ceteris Paribus Assumption

The assumption used in economics that all other variables are held constant when analyzing the effect of one variable on another.

Behavioral Assumption

An assumption that describes the expected behavior of economic decision makers, what motivates them.

Ceteris Paribus Assumption

A Latin phrase meaning "all other things being equal", used in economics to isolate the effect of one variable change by holding other relevant factors constant.

Other-Things-Constant Assumption

An assumption in economics that all other variables remain unchanged or constant except those under immediate consideration.