At the Equilibrium Level of Income, It Must Be True

question 152

Multiple Choice

At the equilibrium level of income, it must be true that total

• A)income equals total spending.
• B)product equals total output.
• C)output equals total inventory.
• D)income equals total saving.

---

Definitions:

Equity-Financed

Describes investments or operations funded by raising capital through the sale of equity, or shares, rather than borrowing.

All-Stock Deal

A type of business acquisition or merger where payment is made entirely in the form of the acquiring company's shares, instead of cash or a combination of cash and shares.

Shares

Shares represent ownership stakes in a company or financial asset, equally splitting any profit distributions, known as dividends, if declared.

Incremental Value

The additional or extra value generated by undertaking a new project, making an investment, or initiating any new action compared to not doing so.