Which of the Following Is a Fundamental Question of Macroeconomics

question 25

Multiple Choice

Which of the following is a fundamental question of macroeconomics?

• A) What is the impact of government provided health care?
• B) How should governments be elected?
• C) What mechanism could force people to pollute less?
• D) Where is the stock market heading?
• E) Should governments act to smooth business cycles?

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Definitions:

Times Interest Earned

Times interest earned, a financial metric, measures a company's ability to meet its interest payments on outstanding debt with its before-tax income.

Income before Income Taxes

Income before income taxes is a financial measure that represents a company's earnings before tax expenses have been deducted.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge on the income statement.

Average Collection Period

The average number of days it takes for a company to receive payment from its customers for invoices issued.