An Increase in Investments in Long-Term Securities Will

question 76

Multiple Choice

An increase in investments in long-term securities will

• A)increase cash flow from investing activities.
• B)decrease cash flow from investing activities.
• C)increase cash flow from financing activities.
• D)decrease cash flow from financing activities.

---

Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price, holding all else constant.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used to assess inflation.

Inflation Rate

The growth rate in the common price range for goods and services, downgrading the practical purchasing scope.

Money Supply

The aggregate financial assets at a specific time in an economy.