Which of the Following Expressions Is Correct

question 18

Multiple Choice

Which of the following expressions is correct?

• A)^Yd= C + I + G - NX.
• B)^Yd = C + I + G + NX.
• C)^Yd = C + I + (G - T) + NX.
• D)^Yd = C + I + (G - T) - NX.

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Definitions:

Current Ratio

It's a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year.

Quick Ratio

A financial metric that assesses a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Marketable Securities

Financial instruments that can be easily converted into cash, such as stocks, bonds, or treasury bills, typically held for short-term investment purposes.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a particular period, indicating the efficiency of inventory management.