Chou Cohas a Net Income of $43,000,assets at the Beginning of of the Year

question 120

Multiple Choice

Chou Co.has a net income of $43,000,assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000.Compute its return on assets.

• A)8.4%
• B)17.2%
• C)14.3%
• D)15.6%
• E)1.5%

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Definitions:

Aggregate Expenditure

The total amount of spending in the economy that includes consumer spending, investment, government spending, and net exports.

Multiplier

An economic factor that quantifies the change in income levels resulting from a change in spending or investment.

Gross Domestic Product

The total value of all goods and services produced within a country over a specific time period, serving as a broad measure of economic activity.

Marginal Propensity

The fraction of an additional amount of income that is spent on consumption. This is a key factor in determining the impact of an income change on the economy.