In the Keynesian Cross Diagram,an Increase in Autonomous Consumer Expenditure

question 103

Multiple Choice

In the Keynesian cross diagram,an increase in autonomous consumer expenditure causes the aggregate demand function to shift up,the equilibrium level of aggregate output to ________,and the IS curve to shift to the ________,everything else held constant.

• A)rise;left
• B)rise;right
• C)fall;left
• D)fall;right

Understand and calculate the cost of equity using different models (e.g., Dividend Discount Model, CAPM).

Calculate the market capitalization of a firm and understand its significance.

Calculate and interpret a firm’s debt-equity ratio and its implications on WACC.

Understand the relationship between beta, market risk premium, risk-free rate, and the cost of equity.

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Definitions:

Shareholders

Individuals or entities that legally own one or more shares of stock in a joint-stock company.

Consumers

Individuals who purchase goods and services for personal use.

Mission Statement

A concise description of a company’s purpose, its goals, and how it serves its stakeholders.

Orientation Session

A meeting or programme designed to introduce new members to a company, institution, or the specifics of a new role.