Asked by Silvia Gopalakrishnan on May 08, 2024
Verified
What economic variable is most closely associated with increasing corporate profits?
A) exchange rates
B) inflation
C) gross domestic product
D) budget deficits
Gross Domestic Product
The sum of the market or monetary worth of all completed products and services generated inside a nation's borders during a particular time frame.
- Identify the factors influencing corporate profitability and economic growth.
Verified Answer
SG
Steph GonzagaMay 12, 2024
Final Answer :
C
Explanation :
Corporate profits are closely associated with the level of economic output in a country, which is measured by gross domestic product (GDP). As GDP increases, firms generally experience greater sales and revenue, leading to higher profits. Exchange rates, inflation, and budget deficits can also impact corporate profits, but they are less directly linked to economic output.
Learning Objectives
- Identify the factors influencing corporate profitability and economic growth.