Exhibit 8-1 -Refer to Exhibit 8-2.Based on the Given Change,what Word (Rises

question 128

Multiple Choice

Exhibit 8-1
-Refer to Exhibit 8-2.Based on the given change,what word (rises or falls) should go in blank (5) and blank (6) ,respectively,to summarize the resulting impact on short run equilibrium?

• A)rises;rises
• B)falls;falls
• C)rises;falls
• D)falls;rises

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Definitions:

Reporting Cash Activities

A process that involves documenting all cash transactions of a company over a specific period.

Statement of Cash Flows

A financial report that describes the sources of a company's cash and how it was spent over a specific time period.

Financing Activities

Transactions and events where cash is raised from or repaid to investors, such as issuing equity or debt.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with predetermined dividend payments.