When Economists Talk About the Capital Resources in the Economy

question 314

True/False

When economists talk about the capital resources in the economy, they are referring to the amount of money circulating in the economy.

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Definitions:

Debt-Equity Ratio

A ratio calculating the balance of debt and equity utilized for financing a company's assets.

Risk-Free Rate

A hypothetical profit rate from a risk-free investment, usually shown by the earnings on state-backed securities.

Yield-to-Maturity

The total return anticipated on a bond if the bond is held until its maturity date, considering all interest payments and the repayment of principal.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.