Return on investment is calculated as:
a) the amount invested divided by earnings.
b) the amount invested divided by the interest rate.
c) earnings divided by the amount invested.
d) earnings divided by the interest rate.
Ans: c) earnings divided by the amount invested.
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Which of the following is included in the government expenditure component of the expenditure approach to GDP?
A) state government expenditure on local schools B) transfer payments C) changes in inventories D) taxes
From a Keynesian perspective, a short-run decrease in investment spending will shift the aggregate
A) supply curve to the left. B) supply curve to the right. C) demand curve to the left. D) demand curve to the right.
If Mary earns $80,000 in taxable income and pays $40,000 in taxes, her marginal tax rate must be 50 percent
a. True b. False Indicate whether the statement is true or false