Y = C + S Even When the Economy Is

question 227

True/False

Y = C + S even when the economy is not in equilibrium.

---

Definitions:

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid before any dividends are paid to common stockholders. Preferred stock typically does not have voting rights.

Return On Assets Ratio

A profitability ratio that measures how efficiently a company can manage its assets to produce net income, calculated by dividing net income by total assets.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue, indicating financial health.

Total Assets

The sum of all assets owned by a company, displayed on the balance sheet, including current and non-current assets.