Which of the Following Is Most Likely to Cause an Increase

question 19

Multiple Choice

Which of the following is most likely to cause an increase in aggregate demand?

• A)an increase in interest rates
• B)a decrease in national income
• C)an increase in imports
• D)an increase in defense spending by the federal government

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Definitions:

Turnover Measure

An indicator of the efficiency and effectiveness of a company in generating revenue or managing inventory, often expressed as a ratio.

Common-Size Statement

A financial statement in which each line item is expressed as a percentage of a significant total, facilitating comparison.

Comprehensive Income

The change in equity of a business enterprise during a period from transactions and other events from non-owner sources. It includes all forms of earnings and gains or losses.

Accounts Payable Turnover

A financial metric that measures the rate at which a company pays off its suppliers.