What Is a Valid Policy to Use for Increasing the Rate

question 78

Multiple Choice

What is a valid policy to use for increasing the rate of economic growth?

• A) reduce reliance on market forces because they allocate goods and services in an unfair manner
• B) encourage trade with neighbouring countries
• C) increase the fraction of GDP devoted to consumption
• D) restrict investment in domestic industries by foreigners because they take some of the profits out of the country

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Definitions:

CCPC

Canadian-Controlled Private Corporation; a designation in Canada for privately owned companies that meet certain criteria for tax purposes.

Net Operating Profit After Taxes (NOPAT)

A measure of an organization's operational efficiency, representing its earnings before interest and taxes minus taxes.

EBIT

Earnings Before Interest and Taxes (EBIT) measures a company's operational profitability by excluding interest and taxes from its net income.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss.