GenLabs Has Been a Hot Share the Last Few Years

question 2

Multiple Choice

GenLabs has been a hot share the last few years, but is risky. The expected returns for GenLabs are highly dependent on the state of the economy as follows:


The expected return on GenLabs is:

• A)3.3%
• B)8.5%
• C)12.5%
• D)20.5%
• E)None of the above.

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Definitions:

Aggregate Income

Aggregate Income is the total income earned by all individuals or entities in the economy within a specific period.

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, indicating how income changes affect spending habits.

Aggregate Income

The total income earned by all factors of production in an economy over a specific time period, including wages, rents, interest, and profits.

Aggregate Consumption

The total amount of goods and services consumed in an economy over a given period of time.