Refer to the Information Provided in Figure 8

question 22

Multiple Choice

Refer to the information provided in Figure 8.3 below to answer the questions that follow. Figure 8.3
-Refer to Figure 8.3. In this economy, aggregate saving will be zero if income is

• A) $100 billion.
• B) $200 billion.
• C) $300 billion.
• D) $400 billion.

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Definitions:

Asset Revaluation Surplus

The increase in value of an asset, reflected on a company's financial statements, after it has been revalued to its current market value.

General Reserve

Funds set aside by a company from its profits for general unspecified future risks or obligations.

Amortisation of Goodwill

The gradual write-off of the purchased goodwill of a company over time, reflected as a non-cash expense in the income statement.

Associate's Profit

The portion of profits attributable to a company's investment in an associate, typically accounted for using the equity method.