Table 26-1 ​
-Refer to Table 26-1

question 214

Multiple Choice

Table 26-1. The following table presents information about a closed economy whose market for loanable funds is in equilibrium.
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$$\begin{array} { | l | l | } \hline \text { GDP } & \$ 8.3 \text { trillion } \\\hline \text { Consumer Spending } & \$ 5.1 \text { trillion } \\\hline \text { Taxes Minus Transfers } & \$ 1.9 \text { trillion } \\\hline \text { Government Purchases } & \$ 0.5 \text { trillion } \\\hline\end{array}$$ ​
-Refer to Table 26-1. The quantity of private saving is

• A)$3.2 trillion.
• B)$1.3 trillion.
• C)$2.7 trillion.
• D)$6.4 trillion.

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Definitions:

Cost Of Equity

The return a company requires to decide if an investment meets capital return requirements, often used in capital budgeting to evaluate projects.

Capital Structure

The composition of a company's liabilities and equity, describing how it finances its overall operations and growth.

Earnings Per Share

A financial ratio that divides a company's net earnings available to common shareholders by the number of outstanding shares, indicating the profitability on a per-share basis.

Debt

Money owed by one party to another under the condition that it is to be repaid, often with interest, at a later date.