The Components That Make Up Aggregate Expenditures Are

question 169

Multiple Choice

The components that make up aggregate expenditures are

• A)consumption and government purchases.
• B)investment, government purchases, and net exports.
• C)consumption, investment, government purchases, and net exports.
• D)income and consumption.
• E)consumption and investment.

---

Definitions:

Asset Turnover Ratios

Asset turnover ratios measure how efficiently a company uses its assets to generate sales, indicating operational efficiency.

Financing Policies

These are strategies that a company formulates for managing its finances, including decisions on debt, equity, and internal financing methods.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholders' equity.

Debt Ratio

The debt ratio measures a company's financial leverage, calculated by dividing total liabilities by its total assets.