Leverage is
A) a measure of the level of investment in an economy.
B) a measure of assets in terms of net worth to be used as a proxy of how much room for debt an investor has when making an investment.
C) a measure of how successfully an investor can negotiate the amount of debt assumed in making an investment.
D) a measure of how much debt an investor assumes in making an investment.
E) a measure of how likely a firm is to be able to influence government policy due to past campaign donations.
Correct Answer:
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