g Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, or a cash flow from financing activities. a. Issuance of common stock Financing b. Cash paid for interest Operating c. Sold equipment for cash Operating d. Receipt of cash dividend on investment Financing e. Repayment of principal on long-term debt Operating f. Loss on disposal of equipment

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.