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In Scenario 9-2 above,at the present,the economy is growing rapidly.In fact,it is growing so rapidly,there is a continuing discussion that interest rates may need to be raised in order to slow economic growth.These factors refer to which of the five Cs?
ROE
Return on Equity, a financial ratio indicating the profitability of a business in relation to its equity, measuring how effectively investment funds are utilized.
Fixed Costs
Regardless of how much is produced or sold, certain costs like rent, employee salaries, and insurance payments do not vary.
Variable Costs
Expenses that change in proportion to the activity of a business.
Selling Price
The price at which a product or service is sold to the customer.
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