Which of the Following Is NOT a Potential Start of a Demand-

question 168

Multiple Choice

Which of the following is NOT a potential start of a demand- pull inflation?

• A)An increase in the quantity of money
• B)An increase in the money wage rate
• C)An increase in government expenditure
• D)An increase in exports

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Definitions:

Combined Leverage

Refers to the use of both operating and financial leverage by a company to assess the potential impact on earnings due to changes in sales.

Degree of Financial Leverage

A measure that quantifies the sensitivity of a company's earnings per share to fluctuations in its operating income due to the use of fixed cost financing.

Earnings per Share

A company's net profit divided by the number of its common shares outstanding, indicating the company's profitability on a per-share basis.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all expenses except interest and income tax expenses.