Which of the Following Transactions Would NOT Be Classified as an Investing

question 15

Multiple Choice

Which of the following transactions would NOT be classified as an investing activity?

• A) acquiring an investment in the shares of another company
• B) lending money to a supplier
• C) receiving dividends on an investment in the shares of another company
• D) disposing of land

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Definitions:

Income Effects

The shift in income for either an individual or an economy, and its subsequent effect on the amount of a good or service desired.

Substitution Effects

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another.

Normal Goods

Goods for which demand increases when consumer income increases and vice versa.

Income Effect

The change in an individual's consumption resulting from a change in their real income, affecting their purchasing power.