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Refer to the following figure when answering
Figure 11.6: IS Curve
-Consider the IS curve in Figure 11.6. If there is a positive aggregate demand shock and interest rates remain constant, the economy will move from point e to:
Debt Financing
A method of raising capital through the sale of bonds, bills, or notes to individual and/or institutional investors, in return for lending the company money.
Operating Leverage
A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.
ROCE
Return on Capital Employed (ROCE) is a financial ratio that measures a company's profitability in terms of the capital it uses.
ROE
Return on Equity; a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how much profit a company generates with the money shareholders have invested.
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