Which of the Following Sub-Components of GDP Can Be Either

question 115

Multiple Choice

Which of the following sub-components of GDP can be either positive or negative?

• A)inventory investment
• B)spending on services
• C)government purchases
• D)All of the above are correct.

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a company's profit that includes all incomes and expenses except interest and income tax expenses.

ROCE

Return on Capital Employed; a measure of a company's profitability in relation to its capital, indicating how efficiently capital is being utilized to generate profits.

After Tax Cost

The net cost of an investment or financing option after taking into account the effects of taxes.

Financial Leverage

Applying borrowed resources to escalate the potential profits of an investment.