What economic variable is most closely associated with increasing corporate profits?

A) exchange rates
B) inflation
C) gross domestic product
D) budget deficits

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.