Which of the Following Would Most Likely Increase Net Profit

question 103

Multiple Choice

Which of the following would most likely increase net profit margin?

• A)Decreasing selling price
• B)Increasing sales volume
• C)Increasing expenses
• D)Decreasing sales volume

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Definitions:

Automatic Stabilizers

Economic measures and initiatives, like taxation and unemployment insurance, that naturally adapt to mitigate the effects of economic changes without direct action from the government.

Discretionary Fiscal Policy

Changes in government spending and taxes to promote full employment, price stability, and economic growth.

Fiscal Policy

Governmental use of spending and taxation to influence the economy.

Government Spending

Expenditures by the government for its operations, programs, and debt payments, which can influence the economy's overall performance.