You Read a Study That Predicts That Rising Oil Prices

question 53

Multiple Choice

You read a study that predicts that rising oil prices projected for this summer are certain to fuel inflation.Having taken an economics class,due to this expected change in prices,you predict that spending today will ________ and aggregate demand today will ________.

• A) be unaffected; be unaffected
• B) increase; increase
• C) decrease; decrease
• D) decrease; increase
• E) increase; decrease

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage.

Average Operating Assets

The average value of assets used in the company's operations, calculated over a specific period to assess asset utilization efficiency.

Net Operating Income

The profit generated from a business's normal core operations, excluding deductions of taxes and interest costs.

Turnover

The rate at which inventory is sold and replaced over a particular period, or the total sales volume.