Which of the Following Is Not a Reason Why Aggregate

question 34

Multiple Choice

Which of the following is not a reason why aggregate demand decreased following the housing bubble collapse?

• A) People stopped investing in houses.
• B) Consumption decreased.
• C) Business investment decreased.
• D) Costs of production increased throughout the economy.

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Definitions:

Voting Stock

Shares that grant the holder the right to vote on company matters, such as electing the board of directors.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, serving as a measure of a company's profitability.

Total Asset Turnover

A metric assessing how effectively a company utilizes its assets to produce income.

Return on Total Assets

A financial ratio that measures a company's ability to generate earnings from its total assets.