What economic variable is most closely associated with increasing corporate profits?
A) Exchange rates
B) Inflation
C) Gross domestic product
D) Budget deficits

Question

Quizplus · Accepted Answer

Corporate profits are closely linked to the health of the overall economy, and gross domestic product (GDP) is a key measure of economic performance. A strong GDP typically indicates healthy economic growth, which in turn can lead to increased consumer demand and higher corporate profits. Exchange rates, inflation, and budget deficits can also impact corporate profits, but these factors are less directly tied to economic growth than GDP.

What Economic Variable Is Most Closely Associated with Increasing Corporate