Based on the Following Information,in Which Year Did the Company

question 117

Multiple Choice

Based on the following information,in which year did the company have the best return on equity?

• A)Year 1
• B)Year 2
• C)Year 3
• D)The company had the same return on equity all three years.No year is better than another.

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Definitions:

Demand Shifts

Changes in consumer desire or preference that cause the demand curve to move either to the right (increase) or left (decrease).

Real Exchange Rate

A measure that compares the relative price of a basket of goods in two different currencies, adjusted for inflation.

Surplus

The amount by which the quantity of a product or service available exceeds the quantity demanded at the current price.

Shortage

A situation in which quantity demanded is greater than quantity supplied.