It is true that microeconomic equalibrium happens when the aggregate supply and aggregate demand curves intersect.
Answer: Option
<u>Explanation:</u>
The aggregate demand curve shows the total quantity of all goods and services demanded by the economy at the different price level of all final goods and services. The aggregate supply curve shows the quantity of real GDP it's supplied by the economy at the different price levels.
When the intersection of aggregate demand and supply curves determines means it's micro economic equilibrium level of real GDP and the price level in the economy.
A loan used to purchase a home is known as B. a mortgage. A mortgage is what is paid each month on a house loan. Most mortages are over a 30 year period and after the 30 years, the home loan is paid off.
Answer:
Current ratio will be overstated
Explanation:
Current ratio measures the short term solvency of a firm. In other words, it measures the ability of the firm to meet its current obligations. It is the ratio of current assets to current liabilities.
A part of long term liability that is to be paid this year is considered current liabilities. If today's fashion continues to report debt due in the current year as long term liability, then current liabilities reported would be lesser than the actual position. As such, current ratio calculated would be higher than what it is actually. So, current ratio will be overstated in this case.
Answer:
a. ABC Inc.
Explanation:
The degree of financial leverage is expressed by the following formula,
= 
The ratio represents the relationship between net operating profits and profits after financial fixed costs.
Higher the degree of financial leverage, higher will be the financial risk.
In the given case, ABC Inc.'s degree of financial leverage is higher which suggests that ABC has employed more of debt in it's financial structure owing to which higher fixed cost obligations in the form of interest payments have been created.
Thus, ABC Inc. will have a greater financial risk.
Products whose demand rises when another product's price increases are called: Substitute goods
