Which of the Following Is a Statement with Positive Economic

question 210

Multiple Choice

Which of the following is a statement with positive economic analysis?

• A) Lower wages increase employment and reduce the unemployment rate.
• B) Slower money growth reduces inflation.
• C) A reduction in the size of the budget deficit will reduce interest rates.
• D) all of the above

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of the company.

Financial Ratios

Quantitative measures derived from a company's financial statements used to evaluate its financial performance and health.

Financial Stability

The condition of having a strong financial foundation, characterized by the ability to withstand economic fluctuations and meet obligations without undue stress.

Operating Efficiency

The effectiveness with which a company utilizes its assets and resources to generate profits and minimize costs without sacrificing quality.