Which of the Following Would Encourage Economic Growth Through Increases

question 189

Multiple Choice

Which of the following would encourage economic growth through increases in the capital stock?

• A)a change from an income tax to a consumption tax
• B)an increase in household saving
• C)a decrease in the government deficit
• D)all of the above

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Definitions:

Return On Assets Ratio

The Return on Assets (ROA) ratio measures a company's ability to generate profit from its assets, indicating efficiency in using assets to produce earnings.

Profit Margin

A financial performance metric that measures the amount of net income earned with each dollar of sales generated by comparing net income to revenue.

Asset Turnover Ratios

Financial metrics that measure the efficiency of a company in using its assets to generate sales or revenue.