Which Statement Is Correct

question 47

Multiple Choice

Which statement is correct?

• A)Diluted EPS assumes that all dilutive securities are converted.
• B)Diluted EPS assumes that all anti-dilutive and dilutive securities are converted.
• C)Diluted EPS assumes that all ordinary securities are converted.
• D)Diluted EPS assumes that all ordinary and dilutive securities are converted.

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Definitions:

Marginal Propensity

The proportion of an additional unit of income that is spent on consumption; a key concept in Keynesian economics related to how income changes affect spending.

Simple Multiplier

The Simple Multiplier is an economic concept that quantifies the impact of a change in investment, government spending, or other economic activity on total output or income.

Aggregate Expenditure

Aggregate expenditure is the total amount of spending in an economy, including consumer spending, investment, government spending, and net exports.

Equilibrium Real GDP

The level of gross domestic product where aggregate supply equals aggregate demand at current prices, adjusted for inflation.