Use of Leverage Always Increases the Amount of Risk

question 6

True/False

Use of leverage always increases the amount of risk.

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Definitions:

National Income

The total income earned by a country's residents and businesses, including wages, rent, interest, and profits.

Government Purchases

Expenditures made by local, state, or federal government sectors on goods and services that directly absorb resources.

Net Exports

The difference between a country's total exports of goods and services and its total imports of goods and services; net exports can be a positive or negative value.

Gross Investment

A company’s total investment in plant, equipment, and inventory. Also, a nation’s plant, equipment, inventory, and residential housing investment.