Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income 85,400
Depreciation expense 12,100
Gain on sale of land 7,600
Increase in merchandise inventory 2,150
Increase in accounts payable
6,250

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.