Return on Equity Is Calculated By

question 55

Multiple Choice

Return on equity is calculated by:

• A)subtracting liabilities from assets.
• B)adding the book value and the market price of a stock.
• C)dividing net income by shareholders' equity.
• D)multiplying assets by a selected number.
• E)deducting taxes from dividends.

Analyze the impact of economic policies on the aggregate demand and supply curves.

Describe the reasons behind the slope of the aggregate demand curve.

Explain the reasons for the upward slope of the short-run aggregate supply curve.

Identify the macroeconomic variables that change during economic fluctuations and recessions.

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Definitions:

Statistical Discrepancy

The difference between two figures that are expected to be equivalent, often arising from timing or measurement errors in data collection.

GDP

A metric for evaluating the economic success of a nation, Gross Domestic Product calculates the overall value of goods and services generated over a designated period.

GNP

Gross National Product; the total value of goods produced and services provided by a country during one year, including net income from abroad.

Net Factor Payments

The difference between the payments made to factors of production from abroad and the payments made to foreign factors of production domestically.