Increasing Which One of the Following Will Increase the Operating

question 25

Multiple Choice

Increasing which one of the following will increase the operating cash flow assuming that the bottom-up approach is used to compute the operating cash flow?

• A)erosion effects
• B)taxes
• C)fixed expenses
• D)salaries
• E)depreciation expense

---

Definitions:

Real Rate

The real rate is the interest rate adjusted for inflation, reflecting the true cost of borrowing or the real yield on an investment.

Nominal Rate

The stated interest rate of an investment or loan, without adjustment for inflation or other factors that affect the real rate of return.

Rate Of Inflation

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

Rate Of Unemployment

The proportion of individuals in the labor force who are not currently employed but are actively seeking employment.