The Demand for Output in a Closed Economy Is the Sum

question 69

Multiple Choice

The demand for output in a closed economy is the sum of:

• A) public saving and private saving.
• B) the quantity of capital and labor and production technology.
• C) consumption, investment, and government spending.
• D) government purchases and transfer payments minus tax receipts.

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Definitions:

Debt-to-equity Ratio

A financial metric indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Times Interest Earned Ratio

A financial metric that compares a company's operating income to its interest expenses, indicating how well the company can cover its interest obligations with its earnings.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest obligations from its operating income.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell products, and collect cash from customers.