What Word Do Economists Use to Refer to the Purchase

question 31

Multiple Choice

What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

• A)capital
• B)consumption
• C)investment
• D)costs

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Definitions:

Times Interest Earned Ratio

A measure of a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes by interest expense.

Loaning Money

The act of giving money to another party with the agreement that the money will be repaid, often with interest.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by its shareholders' equity.

Total Debt Ratio

A financial ratio that measures the proportion of a company's assets financed by its total debt.