Use the Figure Below to Answer the Following Questions

question 123

Multiple Choice

Use the figure below to answer the following questions.
Figure 11.2.2
The economy depicted does not engage in international trade and has no government.Planned aggregate expenditure AE) is equal to the sum of consumption expenditure C) and investment I) .
-Refer to Figure 11.2.2.Equilibrium expenditure is

• A)$100 billion.
• B)$400 billion.
• C)$200 billion.
• D)$250 billion.
• E)$300 billion.

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Definitions:

Acid-Test Ratio

An economic indicator assessing the capability of a business to fulfill its immediate liabilities using its most liquid assets, without counting inventory.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit customers.

Current Ratio

A measure of a company’s capability to settle short-term debts using its current assets.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing liquid assets by current liabilities, excluding inventory from assets.